@1, that would hit the balance sheet as a capital improvement and affect cash on hand (converting one asset into another asset) but it wouldn't affect the P&L since you don't expense capital improvments such as the cloud services infrastucture.
Capital improvements would be expensed only as a depreciation expense and then over the long term life of the capital expendeture
That being said, they are selling the Kindles at a loss, (they are not generating enough immediate revenue to offset the COGS (cost of goods sold) for the number of Kindles they have already sold. Given the fact they have a long wait (three weeks) to get a Kindle to a customer they are accounting for the sale on the books at the time of purchase; not the time of shipment.
All that Amazon Prime two-day shipping can't help. I'm betting that most people who pony up the $79 per year are getting way more than their money's worth out of it.
You can already get free (slow) shipping. How much is two-day shipping compared to ground? Free super saver is also frequently shipped via USPS, not UPS.
Capital improvements would be expensed only as a depreciation expense and then over the long term life of the capital expendeture
You can already get free (slow) shipping. How much is two-day shipping compared to ground? Free super saver is also frequently shipped via USPS, not UPS.
Makes even less sense they would splurge on an expensive $1 billion campus in overcrowded Seattle down town.
Investors should be irked.
It leads to a lot more add-on sales, and purchases in departments customers wouldn't normally go to Amazon for.
(*) I have no knowledge of the actual internal financials. It's just my personal impression.