Quote:
Originally Posted by David Munch
. But I think the biggest problem is that they seem to have produced piles and piles of these phones, without being able to sell them.
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Well, there's piles and there's piles.
The write down they took suggests they have a 500k to 1 Million surplus. Which suggests they built 1-1.5M.
For a company with 250M customers and 50M Prime subscribers that would be a reasonable bet.
The thing to keep in mind is that Amazon is going to move $100B in merchandise this year. At those scales a $170M write down is a stubbed toe; it'll hurt for a while but is nowhere near life-threatening.
These people play on a totally different scale than us working stiffs.
Its like the politician who said "A billion here and a billion there and pretty soon you're talking real money."
(And then consider WalMart is moving $500B in merchandise.)