Today’s Amazon earnings were decidedly split — the corporate revealed both a 44-percent increase in net sales and a 73-percent decrease in net income. So, why the discrepancy? It should not less than partially be a result of much discussed suggestion that the corporate actually loses money for every Kindle sold — a trend which, if true, has likely only been compounded by the discharge of the uber-cheap ad-supported version of the device. The corporate addressed the problem partly, suggesting that it’s concerned about “the lifetime value [of the Kindle], not only the economics of the devices and accessories.” The whole economic picture of the Kindle includes the device itself, accessories, downloaded content and ad-revenue.
Things are apparently looking up for the corporate, besides, with Amazon anticipating “a record quarter in relation to device sales” for Q4. The positivity is a mirrored image, partially, of more than anticipated Kindle pre-orders. Says CEO Jeff Bezos, “Within the three weeks since launch, orders for electronic ink Kindles are double the former launch. And in accordance with what we’re seeing with Kindle Fire pre-orders, we’re increasing capacity and building millions greater than we’d already planned.”
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