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I read your link and perhaps I missed it, but I did not see any mention that the Fire was responsible for Amazon's decrease in profits.

In fact their sales were up 35%. Also I think everyone already knows they're selling the tablet at a loss. The idea is to get the tablet into people's hands so they can buy the content. I suspect that profits will stabilize now that people have their hands on the fire and start buying content.
 
Everyone has reported that the drop in net income was because of high operating costs. This was known and expected.

According to the Huffington Post business section, the higher costs were because:

"The company has been investing heavily in new sales-fulfillment centers. Investments such as these cut into profits during all of last year."

Those operating expenses grew 38 percent to $17.2 billion, meanig they grew by about $5 billion.

The best estimates for how much they're selling each Fire at a loss for, range from $3 to $10.

At the upper figure, it would take 500 million tablets to cause such a jump in expenses.

They've only been selling for less than 20 weeks, at a reported high of 1 million a week.

So no, it's not the tablets.
 
Amazon still not reporting Kindle sales numbers. The charade continues.

Actually they have released kindle figures. While not in this news release but they have in the past

Amazon's press release

SEATTLE--(BUSINESS WIRE)--Dec. 15, 2011-- (NASDAQ: AMZN)—Amazon.com today announced that Kindle devices remain the hottest products this holiday season – for the third week in a row, customers are purchasing well over 1 million Kindle devices per week, and Kindle Fire remains the #1 bestselling, most gifted, and most wished for product across the millions of items available on Amazon.com since its introduction 11 weeks ago. To learn more about the all-new Kindle family – the $79 Kindle, $99 Kindle Touch, $149 Kindle Touch 3G and the $199 Kindle Fire – visit www.amazon.com/kindle.
 
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Amazon has projected a loss next quarter of $100-200 million.
 
Amazon has projected a loss next quarter of $100-200 million.

Umm that was the quarter just released. You are only about 4 months out dated there.
I had took it up but the current news you are reading saying that are articles referencing data from the end of October talking about this quarter's numbers.
 
Apple's iPad 2 raises Apple's quarterly profits to a new record. The iPad's reportedly most significant competitor, Kindle Fire, helps lower Amazon profits by 58%.

http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1654832&

With "enemies" like this, who needs friends? :)
First, your thread title needs to be revised. Second, you clearly did not read the article you personally linked because like the below poster (maflynn), there is no mention of the drop being blamed on the Fire.
If you're going to "report" on something the least you could do is understand it.

I read your link and perhaps I missed it, but I did not see any mention that the Fire was responsible for Amazon's decrease in profits.

In fact their sales were up 35%. Also I think everyone already knows they're selling the tablet at a loss. The idea is to get the tablet into people's hands so they can buy the content. I suspect that profits will stabilize now that people have their hands on the fire and start buying content.
The tablet's price point is spot on for what you get. I've played with one quite a bit now and I simply can't deal with the carousel home page myself, but I like the size.
 
Actually they have released kindle figures. While not in this news release but they have in the past

Amazon's press release

All Kindles, including low-end Kindle eReaders, lumped together.

If the Fire is so popular, why doesn't Amazon give REAL numbers? All we get is "Kindles." Which Kindle? Why the the lack of clarity? What is there to hide?

SHADY.
 
Umm that was the quarter just released. You are only about 4 months out dated there.
I had took it up but the current news you are reading saying that are articles referencing data from the end of October talking about this quarter's numbers.


Umm, I know you like to present yourself as some all-knowing savant on this forum but you're wrong. Look it up.

Forward guidance looks disappointing, too. The company writes:

Net sales are expected to be between $16.45 billion and $18.65 billion, or to grow between 27% and 44% compared with fourth quarter 2010.

Operating income (loss) is expected to be between $(200) million and $250 million, or between 142% decline and 47% decline compared with fourth quarter 2010.

http://blogs.wsj.com/marketbeat/2011/10/25/amazon-misses-on-earnings-revenue-stock-tanks/
 
All Kindles, including low-end Kindle eReaders, lumped together.

If the Fire is so popular, why doesn't Amazon give REAL numbers? All we get is "Kindles." Which Kindle? Why the the lack of clarity? What is there to hide?

SHADY.

I wouldn't say shady, but I see your point. I think its best to have amazon provide solid numbers on the fire, as its not strictly an e-reader.

Given the high sales figures being released and the fact that the fire has overtaken every other android tablet. One can postulate that the Kindle Fire is the second most popular tablet behind the iPad. See Ars article on its market share
 
If the Fire is so popular, why doesn't Amazon give REAL numbers? All we get is "Kindles." Which Kindle? Why the the lack of clarity? What is there to hide?

SHADY.

And what is your view of Apple not reporting breakdowns of their models' sales? Is that also shady?
 
Check the date. October 25, 2011.

My bad, wrong link.

NEW YORK — Amazon's fourth-quarter net income dropped sharply, weighed down by higher operating expenses even as its revenue grew. Investors punished the online retailer's stock in after-hours trading, as the company also gave a disappointing forecast for the current period…


For the current quarter, Amazon is forecasting $12 billion to $13.4 billion in revenue. Analysts were expecting $13.42 billion. The company also said it may record an operating loss for the quarter. Its outlook was in the range of a loss of $200 million to a profit of $100 million for the three months ending in March.

http://online.wsj.com/article/AP06b6635c9cea4dada9b7b454c68dd8e3.html?KEYWORDS=amazon+earnings
 
And what is your view of Apple not reporting breakdowns of their models' sales? Is that also shady?

There's really no comparison between the levels of activity disclosure from AAPL and AMZN.

Bezos is the great master of obfuscation.
 
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And what is your view of Apple not reporting breakdowns of their models' sales? Is that also shady?

No no, it's revolutionary and yet another example of brilliant forward-thinking, because this way Apple's competitors have no idea which models to try to shamelessly copy, and Apple will continue to parade its way into a paradise future where all of the competition dies a slow and painful death and Apple will be the only one left standing. I'm sure they'll continue innovating and charging very fair prices once that happens, too.
 
Microsoft lost money for the first few years when the Xbox was released. Look at them with the Xbox now. A loss is expected to begin with as costs are slowly covered by sales. And by the sounds of it Kindle Fire sales have been strong for Amazon but at the same time not taking a bite out of Apple's market.
 
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