Comments

1
This sounds like you think they should be sacrificing long term strategy in favor of short term profits. Is that what you meant?
2
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.
3
@1, Um... I don't see how you infer that from what I wrote.

That said, I don't think the Kindle strategy is a sure thing.
4
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."
5
I bought a $79 Kindle in October and I must have spent at least $80 on books since then (I buy cheap ones from the under $3.99 section).

Since he sells Kindles at near cost, he made a $80 additional revenue minus the COGs for the ebooks.
6
poor, poor wall street.
7
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,
8
I'd rather shop at Amazon than J.C. Penney.

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