I'm guessing what Goldy means is that they'll pull the "it's part of the long-term strategy" argument to explain a miss this big. Which will, of course, completely reassure those Wall Street investors, who are well known for thinking and investing for the long-term (say, measured in milliseconds) rather than just chasing quarterly profits.
Amazon may have lost money -- a one-time loss -- when my Kindle Fire was bought (a gift), but every book, magazine and app I buy is revenue in their pocket. I think their strategy is sound.
But as @2 points out, Wall Street only cares about the most recent quarter and its own "expectations."
This has been their buisness model since Day 1. Lose money up front and count on future profits. The Kindle is just the newest wrinkle inthe product mix,
That said, I don't think the Kindle strategy is a sure thing.
But as @2 points out, Wall Street only cares about the most recent quarter and its own "expectations."
Since he sells Kindles at near cost, he made a $80 additional revenue minus the COGs for the ebooks.