Tuesday, January 31, 2012

Amazon and Apple: Two Tablet Makers, Two Different Fourth Quarters - Tricia Duryee - Commerce - AllThingsD

Excerpt from an Amazon snapshot; also see Tablet Sales Will Increase Fivefold Over Next Five Years

While revenue growth is impressive, the company’s profitability is being weighed down by losses from the $199 Kindle (which is not quite a break-even proposition), the construction of more warehouses across the globe (17 were added in 2011 for a total of 69) and other investments in infrastructure, like its cloud-computing services and media services, like video, music and e-books.

In contrast, Apple has a rich markup on its iDevices and doesn’t have much of the same overhead as Amazon.

Still, the number of consumers Amazon touches in just one quarter is staggering, and it continues to take share from brick and mortar retailers.

Amazon and Apple: Two Tablet Makers, Two Different Fourth Quarters - Tricia Duryee - Commerce - AllThingsD

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