WHAT A PUFF PIECE TO HYPE KINDLE. IT'S NOT TRADING ANYMORE AT 2-3 TIMES LISTED PRICE. GEEZ!! AMZN GETS MORE PUFF PIECE BALONEY WRITTEN ABOUT IT THAN ANY OTHER COMPANY. THINGS ARE MISERABLE OUT THERE AND THESE IDIOTS ARE TRYING TO PUMP THE STOCK TO THE STRATISPHERE ON ITEMS, PUFF PIECE KINDLE PRICES... BS.
>Nemmy just makes up stuff. Moore's Law does not have much to do with cost but rather the size of integrated circuits.
But the academic definition has practical business applications which aren't "made up":
>He says the Kindle is a simple device that any competitor can easily duplicate. Actually it is rather complex and the new version will be even more complex.
That isn't likely since they aren't adding many new features but simply enlarging the display.
Complex is a relative term, compared to stapler it may be complex; compared to the ipod touch it may be quite simple. You can't even set up folders for your home screen on the device.
Wilkes likes to make up stuff; he has no idea what the new model will be, but simply imagines since it is new, it must have a lot of fancy bells and whistles.
Nemmy just makes up stuff. Moore's Law does not have much to do with cost but rather the size of integrated circuits. He says the Kindle is a simple device that any competitor can easily duplicate. Actually it is rather complex and the new version will be even more complex.
You can do the math yourself. Shorts claimed in 2007 they were selling the device at cost ($400). Moore's Law dictates costs would drop by half by now, probably more.
Yet the selling price has only dropped to $360 since. That implies 80% gross margins.
Its a pretty simple device so it doesn't take a rocket scientist to realize that the parts are rather simple and low cost to begin with and probably even lower now.