@tcarmody: Missing the point…or: How Amazon can’t compete with Apple

Tim Carmody has an interesting piece over at The Verge entitled Amazon to Apple: The Game Starts now, and while all he says isn’t really wrong, he’s still missing the point.

Go ahead and read it at the link above. I’ll wait.

Read it? Ok, good.

Here’s the problem: Amazon made 7 million bucks last quarter. Apple made 8.8 billion bucks in its “disappointing” last quarter. Think about that.

Amazon will never, ever be able to take on Apple as long as it loses substantial money on every Kindle sold, while making almost zero money on all other items it sells. Simple as that.

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One comment on “@tcarmody: Missing the point…or: How Amazon can’t compete with Apple

  1. mesanford says:

    Reblogged this on Marcus Sanford and commented:
    Scott is right, of course. There’s no way that Amazon will be competing with Apple with these new Kindle tablets unless their users end up buying a TON of Amazon paid content every month. Even then, let’s be frank: Amazon is a low-margin business and always will be.

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