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Don't disagree with your point on Apple but worth saying if Amazon's goal is to make a profit it's doing remarkably badly. On a turnover of around $60bn it mak
by Tyrannosaurs 13y ago
Don't disagree with your point on Apple but worth saying if Amazon's goal is to make a profit it's doing remarkably badly.
On a turnover of around $60bn it makes a profit of about $90m. Given that it's nearly 20 years old and beyond the point where it should be struggling to break even either it's doing a very bad job of being profitable or being profitable isn't the companies primary goal right now.
To me it looks like they're managing profit to zero to continue the land grab.
Now that may be legal and fair and in the short term it's good for consumers, but in the longer term I'm not sure it's good for the market (and therefore for consumers) given that most of it's competitors have shareholders who probably do expect profits.
- stephenr 13y agoAmazons goal has to be profit eventually, or there is no point being in business. That they make razor thin margins now, is just evidence they are still undercutting the smaller competition until they're the only player and can set prices to what they want.