Kindle Fire helps raise Amzn profits by -58%

Discussion in 'Apple, Inc and Tech Industry' started by firewood, Jan 31, 2012.

  1. firewood macrumors 604

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    #1
  2. maflynn Moderator

    maflynn

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    #2
    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.
     
  3. kdarling macrumors demi-god

    kdarling

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    #3
    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.
     
  4. Rodimus Prime macrumors G4

    Rodimus Prime

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    #4
    Sorry most of it is from other cost. Shipping cost jumped up on them for example.
     
  5. *LTD* macrumors G4

    *LTD*

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    #5
    Amazon still not reporting Kindle sales numbers. The charade continues.
     
  6. maflynn Moderator

    maflynn

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    #6
    Actually they have released kindle figures. While not in this news release but they have in the past

    Amazon's press release

     
  7. rdowns macrumors Penryn

    rdowns

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    #7
    Amazon has projected a loss next quarter of $100-200 million.
     
  8. Rodimus Prime macrumors G4

    Rodimus Prime

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    #8
    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.
     
  9. GoCubsGo macrumors Nehalem

    GoCubsGo

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    #9
    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.

    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.
     
  10. *LTD* macrumors G4

    *LTD*

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    #10
    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.
     
  11. rdowns macrumors Penryn

    rdowns

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    #11

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

    http://blogs.wsj.com/marketbeat/2011/10/25/amazon-misses-on-earnings-revenue-stock-tanks/
     
  12. maflynn Moderator

    maflynn

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    #12
    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
     
  13. Rodimus Prime macrumors G4

    Rodimus Prime

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    #13
  14. dejo Moderator

    dejo

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    #14
    And what is your view of Apple not reporting breakdowns of their models' sales? Is that also shady?
     
  15. rdowns macrumors Penryn

    rdowns

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    #15
    My bad, wrong link.

    http://online.wsj.com/article/AP06b6635c9cea4dada9b7b454c68dd8e3.html?KEYWORDS=amazon+earnings
     
  16. Rodimus Prime macrumors G4

    Rodimus Prime

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    #16
  17. Bernard SG, Feb 1, 2012
    Last edited: Feb 1, 2012

    Bernard SG macrumors 65816

    Bernard SG

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    #17
    There's really no comparison between the levels of activity disclosure from AAPL and AMZN.

    Bezos is the great master of obfuscation.
     
  18. notjustjay macrumors 603

    notjustjay

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    Canada, eh?
    #18
    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.
     
  19. roadbloc macrumors G3

    roadbloc

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    #19
    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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