Estimate Puts Fire Sales at 6 Million for 4th quarter

carld · 01-30-2012, 01:21 PM

Interesting but very short post from Publishers Weekly.

I don't know that I agree that Amazon is making no money on Fire sales. I expect they're making at least a little profit on each one.

RainingLemur · 01-30-2012, 04:33 PM

That's quite a number. Good job, Amazon (assuming these numbers to be true).

salsaguy · 01-31-2012, 01:22 AM

Carleton
If you do a search on google you find a few news stories that detail how amazon was losing 5-10 dollars on each fire due to mfg and part costs
But they know a loss leader product makes up on the back end with apps, books and movies and purchases with the direct needle in the vein connection to the AZ store
there are also posts about how much experts believe AZ is making from each K F User on the backend

wizwor · 01-31-2012, 06:42 AM

I think they probably turn the corner with Prime. If they lose $10/unit and sell Prime to 20%, they are in the black.

carld · 01-31-2012, 08:46 PM

@salsaguy

I've seen plenty of estimates for Amazon's costs to produce the Kindle Fire. Some of those estimates go as low as $150.

01-30-2012, 01:21 PM	#1
carld Wizard Posts: 2,698 Karma: 4748723 Join Date: Dec 2007 Device: Kindle Paperwhite	Estimate Puts Fire Sales at 6 Million for 4th quarter Interesting but very short post from Publishers Weekly. I don't know that I agree that Amazon is making no money on Fire sales. I expect they're making at least a little profit on each one. Last edited by carld; 01-30-2012 at 01:23 PM.

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01-30-2012, 04:33 PM	#2
RainingLemur Spork Connoisseur Posts: 2,355 Karma: 16780603 Join Date: Mar 2011 Device: Nook Color	That's quite a number. Good job, Amazon (assuming these numbers to be true).

01-31-2012, 01:22 AM	#3
salsaguy Addict Posts: 381 Karma: 30500 Join Date: Dec 2011 Device: Kindle Fire (1st Gen), Kindle Touch, KFHD 8.9 No Ads	Carleton If you do a search on google you find a few news stories that detail how amazon was losing 5-10 dollars on each fire due to mfg and part costs But they know a loss leader product makes up on the back end with apps, books and movies and purchases with the direct needle in the vein connection to the AZ store there are also posts about how much experts believe AZ is making from each K F User on the backend

01-31-2012, 06:42 AM	#4
wizwor Wizard Posts: 1,068 Karma: 23867385 Join Date: Nov 2011 Device: kindle, fire	I think they probably turn the corner with Prime. If they lose $10/unit and sell Prime to 20%, they are in the black.

01-31-2012, 08:46 PM	#5
carld Wizard Posts: 2,698 Karma: 4748723 Join Date: Dec 2007 Device: Kindle Paperwhite	@salsaguy I've seen plenty of estimates for Amazon's costs to produce the Kindle Fire. Some of those estimates go as low as $150.

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