Tag: kindle

Amazon’s tortoise to everyone else’s hare

Venkatesh Rao: Unlike the other big companies that symbolize our times — Google, Apple, Facebook, Microsoft — Amazon did not rise to power by inventing a new product or service. It came to power by systematically taking down an entire existing industry. It is a story that called for strategic depth, not technical wizardry, design brilliance or sheer energy.  In the technology world, nobody holds up Amazon engineers as extraordinary geniuses or its designers as Da Vincis. They are good, but not great. Yet, time and again, Amazon wins.

Straight out the Apple playbook, Amazon spend on the Kindle supply chain

Of course Amazon is going to have less free cash this quarter. The point of having buckets of cash is so you can buy in bulk, and get a discount. And the Kindle Fire needs a lot of bulk buying (back of the envelope calculations, at least $175 million, maybe nearer $200 million given the growth in gross sales). But that bulk buy will drop costs along the board, and while the Kindle Fire tablet may be sold at cost, the long term profit from giving everyone a personalised storefront, is going to far outweigh a small profit drop. Quite frankly,