Tag: profit

Samsung plans to return to profitability by using Nokia’s old strategy

Samsung’s profits are down (60% year on year for Q3), because nobody is buying their high-end models and the average selling price per handset is dropping. Its solution is to…. sell more low-end handsets and promote the Note 4 heavily. That would be the Note 4 that they had to cut the launch price of because of the competition from the iPhone 6 Plus. Samsung is doing the same thing Nokia tried (which failed), that Palm tried (and failed), that [the standalone] Motorola tried (and failed), that Ericsson tried (and failed). What makes the South Korean company think they’re any different?

Show me the money… or another Amazon Fulfilment Centre

Former Amazon employee Eugene Wii talks about Amazon’s business model and where the profit goes. But to me, a profitless business model is one in which it costs you $2 to make a glass of lemonade but you have to sell it for $1 a glass at your lemonade stand. But if you sell a glass of lemonade for $2 and it only costs you $1 to make it, and you decide business is so great you’re going to build a lemonade stand on every street corner in the world so you can eventually afford to move humanity into outer

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,

Step 1, tweak BBC Charter… step 3, profit!

The Big Brother Corporation (that joke tm Spike Milligan) reports that the international version of the site, BBC.com, is reporting a profit two years ahead of schedule . Which is nice, but I’d like to see how much expenditure they have going out for the content and other areas beyond the quoted "…multimillion pound rights payment for us to run the BBC.com business". It’s a good news story, but can we dig a bit deeper? No matter what, I am looking forward to something out of this story, and that’s the arrival of some faux licence fee outrage from the