Amazon views the tablet simply as a device to access their products. They could care less about making a profit on the device, but the products that it can sell via use of its tablet will ultimately be the revenue generator. They are going for market share, smart move! Will see as the smart money moves in and buys AMZN on the cheap over the next month!
yeah, but they do virtually everything at a loss. So they lose money on the fire, but they sign up people for Prime, but they are paying a fortune for media content to get people to sign up for Prime. By the end of the day, with the costs of shipping and content, etc., they'll lose money on Prime too.
The market has taught these guys that they don't have to make profits, just sell more and more. They learned well, and they'll sell anything at a loss.
This will end badly. It always does.
I think amazon has made a huge mistake trying to take on apple for tablets but they really had no other choice because the writing was on the wall that apple will be the dominant player for content along with google.
Its gonna be a oligopoly.
Third guy is out and will have to stick to selling books and merchandise.