07-30-2010, 08:54 AM | #1 |
Novelist
Posts: 287
Karma: 387979
Join Date: May 2010
Location: Eugene, Oregon
Device: Kindle
|
Amazon: Paying a Price for Going Cheap
This WSJ article implies that investors will be unhappy with Amazon for taking a loss on the new $139 Kindle. I guess they want to see a better bottom line right now instead of Amazon's long-term goal of building book sales.
http://online.wsj.com/article_email/...TEyNDkyWj.html |
07-30-2010, 09:10 AM | #2 |
Grand Sorcerer
Posts: 11,732
Karma: 128354696
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000
|
That article is sooo clueless it's not funny.
- Amazon has *always* been scolded by the "investors" for its long-term thinking. Yet their stock price and liquidity never suffers. And the strategy has always paid off. Actual stockholders, rather than the faceless mythical "investors" of the press, understand what kind of company Amazon is and they have never even dreamed of a stockolder revolt. - iPad readers will "inevitably" gravitate to iBooks even if they "currently" read on Kindle? Really? (Somebody explain lock-in to the dude, please; I don't have the time.) - Apple and the Price-Fix Five Forced Amazon to raise prices? Yeah, but *only* on the books from the PriceFix Five, not on everybody else's. And those books are a minority. Amazon has a strategy and they're executing; no reasonable stockholder will have an issue there. If they didn't like low margin retailers they wouldn't be an Amazon stockholder because what Amazon is now is what its always been. They have always marched to the beat of their own drummer. It's gotten them this far and so far they are succeeding in their goals. The faceless "investors" clearly don't understand the implication of what Bezos is doing and if he is right, that ebooks sales will surpass paperback sales within a year or so those same "investors" are going to be kicking themselves for passing up the chance to jump on the bandwagon. The stockholders, though, I suspect will be quite pleased. (Too bad I'm not one.) |
Advert | |
|
07-30-2010, 09:10 AM | #3 |
Connoisseur
Posts: 98
Karma: 161
Join Date: May 2010
Location: Quebec, Canada
Device: PRS-600
|
I wont certainly go with them (I don't need the cheapest, plastic reader, I need the quality). Yes, they are going cheap but we'll see the results. They are opposite of Sony, which always tries to give the best possible quality to customers (but sometimes fail, like in Beta, and sometimes win, like in Blu-Ray).
|
07-30-2010, 09:35 AM | #4 |
Grand Sorcerer
Posts: 11,732
Karma: 128354696
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000
|
Uh, is that kool-aid grape or cherry?
Sony readers are pretty good. But so are Kindles, Nooks, Pocketbooks, and others. Most of them offer useful features that Sony doesn't. And they do it for significantly less. If the Sony brand floats you boat then, great; enjoy your reader. But don't try to make out that they are anything special; they are not. They don't offer anything you can't get with other readers at better prices, and often done better. Today there is nothing "premium" about Sony readers. They are middle of the pack at best, which is what you'd expect from a year-old design with two-year-old screen tech. They are no longer leaders or even close followers, and if they don't come up with something new, they'll merely be also rans. |
07-30-2010, 11:33 AM | #5 | ||
Interested Bystander
Posts: 3,725
Karma: 19728152
Join Date: Jun 2008
Device: Note 4, Kobo One
|
Quote:
Quote:
He is talking about iPad users reading books in the Kindle app. There is no lock-in as to where they buy the next book from. |
||
Advert | |
|
07-30-2010, 11:36 AM | #6 |
Bookaholic
Posts: 14,391
Karma: 54969924
Join Date: Oct 2007
Location: Minnesota
Device: iPad Mini 4, AuraHD, iPhone XR +
|
Who says they're losing money on it? Probably not making much, but I'd guess they're making a minimal (maybe $20) profit on them.
|
07-30-2010, 11:44 AM | #7 |
.
Posts: 3,408
Karma: 5647231
Join Date: Oct 2008
Device: never enough
|
|
07-30-2010, 12:33 PM | #8 |
Enthusiast
Posts: 26
Karma: 10
Join Date: Nov 2008
Location: Oklahoma
Device: Oasis, Aura One, Lumi
|
This is the same set of people who ran AMZ stock up to 150 and them trashed it when they didn't turn a profit fast enough - all the while ignoring Mr Bezos' statements that it might take him a full decade to make a profit?
I think I will ignore those short-sighted people now like I did then. |
07-30-2010, 12:37 PM | #9 |
Groupie
Posts: 189
Karma: 2190
Join Date: Aug 2007
Device: Sony PRS-500
|
**wrong thread**
Last edited by OrcaBlue; 07-30-2010 at 01:18 PM. |
07-30-2010, 12:45 PM | #10 |
Wizard
Posts: 2,698
Karma: 4748723
Join Date: Dec 2007
Device: Kindle Paperwhite
|
I'd say the same. I see lots of claims that Amazon is losing money on the new $139 Kindle, but it's all just supposition and maybe a bit of sour grapes.
|
07-30-2010, 12:52 PM | #11 |
Wizard
Posts: 1,516
Karma: 2567610
Join Date: Oct 2009
Device: Kindles - Keyboard, Fire, 2-US, iPhone, iPAD
|
really not all that different than what most of those experts said about Amazon in the 1990's when Bezos was running losses out the Wazoo building market dominance. Because as we were told, people will never want to buy books over the internet. They'll insist on going to a store and browsing. The internet will never replace bricks and mortar bookstores.
It wouldn't surprise me at all to see Amazon selling Kindles at a loss. It's a strategy that's worked for the company before. Jeff Bezos has a track record of thinking in 5 to 10 year time frames, while Wall Street these days can barely think past the next quarter. As for the stock price, shoot I hope it does fall. I didn't get in on that $100 dip after the last quarterly release and I'd really like to buy some more Amazon stock. |
07-30-2010, 02:03 PM | #12 | |
Wizard
Posts: 2,999
Karma: 300001
Join Date: Jan 2007
Location: Citrus Heights, California
Device: TWO Kindle 2s, one each Bookeen Cybook Gen3, Sony PRS-500, Axim X51V
|
Quote:
The K2 is a user-friendly design and the K3 looks to be the same. But yes, I like the idea of a lighter device - the one complaint I had for the K2 over the Gen3. And given how many ebooks I buy in .epub and convert to .mobi using Calibre, I don't really *need* 3G... So, yes, *I* will be spending $139 for a WiFi K3. Derek |
|
07-30-2010, 02:04 PM | #13 | |
Grand Sorcerer
Posts: 11,732
Karma: 128354696
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000
|
Quote:
My point is that *amazon* has the lock-in, not Apple. To say Kindle readers on iPad are ging to move to iBooks *at any point* is ludicrous because once you've bought into the Kindle platform you're locked-in to the kindle platform. Buying off iBook brings no advantage to somebody already buying Kindle books. The only growth path for iBooks (and it *is* substantial) is from people who buy iPads who're *not* reading Kindle or B&N ebooks. But that growth is *not* going to come from Amazon's (or B&N) existing customers, just the newbies. His whole thesis is half-baked. |
|
07-30-2010, 02:07 PM | #14 | |
Grand Sorcerer
Posts: 11,732
Karma: 128354696
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000
|
Quote:
(Estimates are from 3.5 to 4.2 million Kindles to ship in 2010, more in 2011.) Unless we see newer/better numbers, that's what we have to work with. |
|
07-30-2010, 02:27 PM | #15 | |
Orisa
Posts: 1,999
Karma: 1035571
Join Date: Feb 2010
Location: Ireland
Device: Onyx Poke 5
|
Quote:
|
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Keep a beloved but low-paying job, or take a higher-paying job I might not love? | ficbot | Lounge | 26 | 07-18-2010 04:48 AM |
Amazon Paying Commissions On Kindle Books (Again). | benrichter | News | 3 | 05-08-2010 08:31 AM |
Cheap case and Skin from Amazon UK | halljames | Sony Reader | 8 | 07-24-2009 06:04 PM |
Cheap Phillip K Dick on Amazon for Kindle | gobills | Deals and Resources (No Self-Promotion or Affiliate Links) | 0 | 11-10-2008 09:07 PM |