Wednesday, October 26, 2011

Amazon Misses Earnings Target - John Paczkowski - News - AllThingsD

Could be worse; could be Netflix

One bit of good news: CEO Jeff Bezos said in a statement that the company is seeing huge demand for the Fire. “In the three weeks since launch, orders for electronic ink Kindles are double the previous launch,” Bezos said. “And based on what we’re seeing with Kindle Fire preorders, we’re increasing capacity and building millions more than we’d already planned.”

In other words, Amazon underestimated demand for the Fire and is ramping up accordingly. Could that be part of the reason behind today’s earnings miss? Certainly possible. Recall that according to some reports, Amazon is likely losing about $50 per Fire.

Amazon Misses Earnings Target - John Paczkowski - News - AllThingsD

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