Quote:
Originally Posted by Andy Baird
"It's clear that Amazon, having decided that they can't wait for the hidebound publishing industry to wake up to reality, are taking a loss on these books in order to prime the pump and get Kindle (and the whole ebook concept) off the ground. It's a risk, but they have the deep pockets to do this for as long as it takes; Sony doesn't.
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Hmmm....
Sony for YE 2007 (March) made $1,073,788,000 Net Income that's $1.07 Billion on $70,513,408,000 (70 Billion) in revenues.
Amazon for YE 2006 (Dec) made 190,000,000 Net Income that's .19 Billion on $10,711,000,000 (10.7 Billion) in revenues.
So, Sony made like 9.5 times the income (profit) of Amazon in only 7 times the revenue (sales).
Plus, Sony has $6.8Billion of Cash with total Assets of $1Trillion while Amazon has about 1.02Billion of Cash with total Assets of about 4.4Billion.
So, I think Sony really is the one with the "deep pockets" compared to Amazon... and if they wanted to do this, they could!
BOb
BTW: These numbers all came from Yahoo finance, you can check them yourself.