"we make money when people use the Kindle, not when they buy it"
Amazon loses A LOT of money with the sale of each unit. The whole issue with Amazon is that a merchendizing company is trying to do design, development, and production of products. This is extremely poorly managed. As an ex-Amazon employee I have to warn the people who own this stock. The business model Mr. Jeff B has put in place is not sustainable. He has to divorce his losing proposition and let them run it like a PC company, which is who they really are. Amazon content is now available everywhere. There is no good reason for anyone to buy Kindle products. I finally switched to iPad and so happy I did. I totally hated the Fire.
Besides, there is a limited life expectancy on all consumer electronics including the kindle:)
This is one more reason why I say this phat plump piggie is gonna take it hard one day.
IMO there should be a complete SEC investigation into this non money making ponzi before it turns madoff on pension funds, and implodes, and grannie nellie is left high and dry because the pbgc wont be able to handle it because of its limited revenue.
These tech toys are outdated within a year. There's also a huge overhead cost in tech and software support. And the mfr must constantly look ahead for new product development due to the short product cycle. It's a very fast paced environment with razor-thin profit. This is where volume comes into play.