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This sounds like you think they should be sacrificing long term strategy in favor of short term profits. Is that what you meant?
Posted by Patti on January 31, 2012 at 3:01 PM · Report this
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.
Posted by maddogm13 on January 31, 2012 at 3:04 PM · Report this
Goldy 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.
Posted by Goldy on January 31, 2012 at 3:24 PM · Report this
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."
Posted by bigyaz on January 31, 2012 at 3:29 PM · Report this
Supreme Ruler Of The Universe 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.
Posted by Supreme Ruler Of The Universe http://_ on January 31, 2012 at 3:34 PM · Report this
r.chops 6
poor, poor wall street.
Posted by r.chops on January 31, 2012 at 3:47 PM · Report this
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,
Posted by M. Wells on January 31, 2012 at 4:43 PM · Report this
I'd rather shop at Amazon than J.C. Penney.
Posted by WestSeven on January 31, 2012 at 5:47 PM · Report this

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