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> It's strange that they can't continue to compete in this category, especially given the high price of their device. Given that Amazon posted a net loss this

by eykanal 14y ago

> It's strange that they can't continue to compete in this category, especially given the high price of their device. Given that Amazon posted a net loss this past quarter in part due to manufacturing expenses, I wouldn't call their strategy "effectively competing".

Kylekramer 14y ago
While I am sure Amazon stockholders and financial types care very much about a net loss, the consumer market does not. They are very effectively competing in the market for tablets. Whether the way they are competing is good for business is an entirely separate matter.
- rafkin98 14y ago
  First of all, the whole "attack" starts with a Gizmodo quote. Nuff said. "They are very effectively competing in the market for tablets." Yep, it doesn't take a genius to sell anything at loss.
  - Evbn 14y ago
    Amazon is a big company. Net loss overall doesn't mean the tablet is at a net loss.
    - jmelloy 14y ago
      Except for the part where they announced their margins on the tablet were at best razor thin.
      - res0nat0r 14y ago
        This is already a known fact. Their hardware margins are razor thin because they are using the hardware to drive movie, music, book and shopping sales.
yohui 14y ago
That's relevant to a holistic discussion about Amazon's strategy vs. Apple's, but beyond the narrow topic of display resolution. Apple plainly chose the iPad mini's resolution to ease app compatibility. That this leaves it with a lower-density display is an uncomfortable fact. How much it'll matter to the regular customer, I don't know. I would have just moved on rather than drawing attention to this fact, but Apple instead chose to return to physical screen size. Personally, I've always valued other aspects of displays more, but they made their call.
mbreese 14y ago
A lot of that loss was due to their Living Social investment, most of which was written down. And if they had large manufacturing expenses, are those for devices made and sold last quarter? Or is it for devices made last quarter to be sold this quarter?

by eykanal 14y ago

Kylekramer 14y ago

While I am sure Amazon stockholders and financial types care very much about a net loss, the consumer market does not. They are very effectively competing in the market for tablets. Whether the way they are competing is good for business is an entirely separate matter.

rafkin98 14y ago
First of all, the whole "attack" starts with a Gizmodo quote. Nuff said. "They are very effectively competing in the market for tablets." Yep, it doesn't take a genius to sell anything at loss.
- Evbn 14y ago
  Amazon is a big company. Net loss overall doesn't mean the tablet is at a net loss.
  - jmelloy 14y ago
    Except for the part where they announced their margins on the tablet were at best razor thin.
    - res0nat0r 14y ago
      This is already a known fact. Their hardware margins are razor thin because they are using the hardware to drive movie, music, book and shopping sales.

yohui 14y ago

That's relevant to a holistic discussion about Amazon's strategy vs. Apple's, but beyond the narrow topic of display resolution. Apple plainly chose the iPad mini's resolution to ease app compatibility. That this leaves it with a lower-density display is an uncomfortable fact. How much it'll matter to the regular customer, I don't know. I would have just moved on rather than drawing attention to this fact, but Apple instead chose to return to physical screen size. Personally, I've always valued other aspects of displays more, but they made their call.

mbreese 14y ago

A lot of that loss was due to their Living Social investment, most of which was written down. And if they had large manufacturing expenses, are those for devices made and sold last quarter? Or is it for devices made last quarter to be sold this quarter?