Amazon’s shares slashed as profits drop 73% Amazon’s share price dropped sharply after it reported overall profits have fallen 73 per cent year on year. The third quarter of the year is traditionally the slowest for retailers, but the company reported that net sales rose 44 per cent from this time last year. However, the company is selling its Kindle hardware at a loss …
his is just Amazon showing once again they aren't afraid to invest in growing the business.
And just read this news "Kindle Fire expected to sell 5 million in Q4" yesterday, really good news to Amazon!
I really like the Kindle! And would support it for sure.
I have already got a kindle fire for my reading and watching, and got many apps like aneesoft video converter to convert videos&movies for it, and now Im considering to buy another for my Mom.
I worked for a company that slashed costs, closed buildings, sacked staff, released underdeveloped products, etc. Result? Share price went up.
It's no wonder that the economy is so far down the shitter when short-termism is the name of the game and a company like Amazon, which is heavily investing in a long and sustainable future with a diverse portfolio of products and services, is punished.
Fucking idiots indeed.
..have the best chance of anyone in taking on the iPad. I would guess that most people you see on the tube with an iPad don't want one because Apple are a technology company, or because it's especially amazing tech, but because it's supposedly cool. Apple have somehow managed to convince everyone they're not a technology company at all, which is why Samsung, Dell etc. will never be able to go for that cool factor - the latter's tablets are seen as a nerdy attempt at chasing the zeitgest and thus doomed to fail from the outset. Amazon aren't (primarily) a technology company, and have a surprisingly cool, laid-back image for what's essentially a giant catalogue store, which I'd say is partly why Kindle has also done well.
I think Kindle Fire could well be the perfect balance between the Kindle and the iPad. Time will tell.
"I have already got a kindle fire for my reading and watching, and got many apps like aneesoft video converter to convert videos&movies for it, and now Im considering to buy another for my Mom"
Lemon, you already have one, is your name Lemon Bezos or something??? it doesnt get released for another month?
There can be no doubt, the ability for a bunch overpaid and under-informed 'Analysts' in the Financial Sector is truly amazing. Just think, if you handled your home budget on the basis that because your quarterly utility bill had blown an additional 25% hole in your monthly budget then you should clearly declare for Bankruptcy, then you (me) and a vast segment of the population would all be without financial standing!
On a separate note - I have a iPad. I'm no Fanboi but I don't have it (or use it) on the Tube because it's cool, I have it because it's convenient, effective and simple to use - perhaps unlike others I don't have have the funds to buy something that costs more than £500 simply because it's cool, I try and at least justify to the wife that I haven't become as methodical in my thinking as a Wall Street Financier!
The Kindle Fire looks interesting but mainly based on it's price and shame it's not (yet) available in the UK - thanks Amazon.
If / when Apple release a lower spec (and cost) iPad I suspect it will harm the market for the 'Fire' - like it or not an Apple iPad is better and cooler in most peoples eyes than a Fire. Not really sure why people buy any Kindle devices these days when the iPad runs the Kindle app.
I like Amazon as a company but selling the product at a loss could cost you when people just root it and install something else or don't actually buy the media from you.
I bought one because I wanted to be able to read e-books. I wanted to be able to read them in direct sunlight. I didn't want to worry about charging the thing every few days (or even weeks, as it turns out). I didn't care about games, video etc.
And, importantly, I didn't want to spend the sharp end of five hundred quid for the privilege.
Everyone's needs are different, but considering the number of Kindles Amazon has apparently managed to shift it seems like I'm not alone in wanting these things.
"On the other hand, now would probably be a good time to buy some Amazon shares."
If that's what you believe put your money where your mouth is.
Of course they could be siffering in the global recession like many others and their cut-throat margins may be a little too close. Sales over the Xmas period will be interesting.
Perhaps investors are looking long term and feeling the shares are not worth their current value - they may be right and you may be wrong - time will tell.
Personally I am not sure selling a tablet as a loss leader (against another company with already over 75% of the market) is such a good idea or to put it another way - if Apple brought out a lower cost version which would people buy?
However, if apple did bring out a cheap version of the ipad, and it was still good enough to be better that the fire, then they will almost certainly sell a lot less of the more expensive ipads as people switch the cheaper one. This will probably lead to less profit for Apple.
Apple do high margin low volume, amazon do it the other way round. I don't imagine either will move towards the other.
Most people want iPads- some people can't afford them and buy Android tablets instead - if Apple dropped the price (as it could) or released a cheaper model (as it could) it would heavily eat into the Android market.
Sure I will get flamed by die-hards that want an Android tablet they can root and run their own ROMs on - but 99.9% are not like you.
You've done a methodologically-sound survey of a statistically-significant subset of "most people", have you?
And no, I don't want an Android tablet. I've seen plenty of tablets, iOS and Android and a handful of others going back to those wildly-successful Windows Pen systems of seven or eight years ago. I loathe them all.
The Kindle (the real one, with the e-Ink screen and physical keyboard), on the other hand, is mildly interesting. I'd take one if someone gave it to me. It's even conceivable that I'd buy one, though it's far from the top of my list.
You ask people which they would prefer - branded jeans or ADSA budget ones - same with tablets - you would rather be seen using an iPad than a Fire / other.
On top of that it is also the best / easiest to use - especially if you already use iTunes (i.e. almost anyone with an iPod). A friend bought a budget Android tablet - but took it back and bought an iPad as he had used mine and the difference was huge.
I tend to wear the asda middle of the road ones. likewise with my tech, something that works, looks ok and doesnt cost me an arm and a leg.
Budget android, aka the £70 thing I bought for the kids to play with from asda has its purposes but you cannot compare it to the likes of an ipad (or tab)
Seems like a very good time to me to buy shares.
Not for a quick profit but to hold onto for 3-5 years.
Everything I see about amazon makes me think they actually have a strategy that's more than just "see how much money we can report for the next quarter" like so many companies.
I may well be wrong, but I intend to invest some but not all of my money in amazon as part of the "slightly risky but I have good feeling about it" part of my investments.
... I didn't realise I was buying that much from them!
But I stopped buying from them after they allowed a fraudster to set up an account using the same card as my actual account (PayPal won't allow this so why does Amazon?) and "reward" their criminal little student friends with goods from Amazon. A well known scam in fraud investigation circles, apparently: Criminals ask students to help them obtain credit card details and reward them by buying stuff off their wish lists - of course Amazon seems to be incapable or unwilling to spot and stop this behaviour.
So I have absolutely no sympathy with their situation...
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