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Amazon Kindle Fire: More Profitable Than Expected?

39 points by FluidDjango 15y ago

steder 15y ago
So when users purchase a device designed to consume amazon services they consume more amazon services...
- bproper 15y ago
  Yeah, nothing surprising here. By this logic, since most of the revenue comes from ebooks, they should have stuck to selling normal Kindles. I suppose app and streaming video revenue will grow over time.
  - JoeAltmaier 15y ago
    Half were gifts. This is a crossover device, at least in grandma's opinion, and she chose it over other pads. Even if its worse than a 'real Kindle', the point is the Fire got a sale that probably would have been lost to a nook etc.
  - deleted 15y ago
    [deleted]
jmslau 15y ago
Their hardware cost will also come down as they achieve increased economies of scale. Net net, the profitability of the Fire should increase over time.
timwiseman 15y ago
How does this handle reading e-books? The article lists that as one of its main uses in the real work, but it seems like it would be a dramatically worse experience than either paper or the e-Ink kindles that came before the fire.
- untog 15y ago
  This, IMO, is one of the real problems with both Amazon and B&N branding their LCD tablet devices under the same brand as their eInk ones. People don't seem to "get" it. The Fire/Tablet is more expensive, and so, must be the "best". If all you want to do is read, the LCD devices are actually worse in both readability and battery life. But I don't see either manufacturer doing a great job at explaining that.
  - timwiseman 15y ago
    I think you have a great point. I have an older kindle (odd to say that about something I got less than 6 months ago...) that I think is fantastic as a dedicated reader. I would pay for the Fire swiftly, if it was a better reader, but the store models I have seen seem to be worse as dedicated readers.
kinofcain 15y ago
47% bought one as a gift, that worries me. It's similar to my own anecdotal evidence from people I know who bought them: they have an iPad, but they bought their kid/niece/nephew a kindle fire. It seems like a lot of these are going to families as a 'second tablet'.

39 points by FluidDjango 15y ago

steder 15y ago

So when users purchase a device designed to consume amazon services they consume more amazon services...

bproper 15y ago
Yeah, nothing surprising here. By this logic, since most of the revenue comes from ebooks, they should have stuck to selling normal Kindles. I suppose app and streaming video revenue will grow over time.
- JoeAltmaier 15y ago
  Half were gifts. This is a crossover device, at least in grandma's opinion, and she chose it over other pads. Even if its worse than a 'real Kindle', the point is the Fire got a sale that probably would have been lost to a nook etc.
- deleted 15y ago
  [deleted]

jmslau 15y ago

Their hardware cost will also come down as they achieve increased economies of scale. Net net, the profitability of the Fire should increase over time.

timwiseman 15y ago

How does this handle reading e-books? The article lists that as one of its main uses in the real work, but it seems like it would be a dramatically worse experience than either paper or the e-Ink kindles that came before the fire.

untog 15y ago
This, IMO, is one of the real problems with both Amazon and B&N branding their LCD tablet devices under the same brand as their eInk ones. People don't seem to "get" it. The Fire/Tablet is more expensive, and so, must be the "best". If all you want to do is read, the LCD devices are actually worse in both readability and battery life. But I don't see either manufacturer doing a great job at explaining that.
- timwiseman 15y ago
  I think you have a great point. I have an older kindle (odd to say that about something I got less than 6 months ago...) that I think is fantastic as a dedicated reader. I would pay for the Fire swiftly, if it was a better reader, but the store models I have seen seem to be worse as dedicated readers.

kinofcain 15y ago

47% bought one as a gift, that worries me. It's similar to my own anecdotal evidence from people I know who bought them: they have an iPad, but they bought their kid/niece/nephew a kindle fire. It seems like a lot of these are going to families as a 'second tablet'.