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Amazon Posts Quarterly Loss, Explains Why Kindle Fire HD is Superior

Steven Blum
2

Amazon is attempting to steal the limelight from Apple today with a smartly-worded press release about why the Kindle Fire HD is superior to the iPad Mini. In a press release sent out today, the company goes after the iPad Mini's high price-point, inferior display and lack of support for HD movies and TV. Here's what Amazon's PR folks came up with:

Compared to the iPad mini, Kindle Fire HD 8.9” has:

  • 193% more pixels (2,304,000 pixels vs. 786,432 pixels)
  • 56% more pixels-per-inch (254 vs. 163)
  • Watch HD movies and TV – cannot on iPad mini (iPad mini is an SD device)
  • Better audio with dual stereo speakers and Dolby Digital Plus
  • Wi-Fi with dual band, dual antennas + MIMO
  • Costs $30 less


Compared to the iPad mini, Kindle Fire HD 7” has:

  • 30% more pixels (1,024,000 vs. 786,432 pixels)
  • 33% more pixels per inch (216 vs. 163)
  • Watch HD movies and TV – cannot on iPad mini (iPad mini is an SD device)
  • Better audio with dual stereo speakers and Dolby Digital Plus
  • Wi-Fi with dual band, dual antennas + MIMO
  • Costs $130 less

While it may seem like pretty good PR, the truth is that Amazon is trying to distract the press from talking about the $274 million loss they incurred this quarter, due to a failed investment in the website LivingSocial. Of course, that's not what headlines the press release: the company also posted a 27% increase in net sales, $13.8 billion in Q3 compared with $10.88 during the same period last year. But there were no profits. It could also be that Amazon is losing a significant amount of money with each Kindle Fire sold; the company's plan has always been to make back the money they lose by having people buy lots of content via their devices. 

(Top photo: onemedia.com)

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Comments

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  • CJ Brown Oct 28, 2012 Link

    Does a Kindle User own the content they purchase?
    What was Amazon's excuse for purchasing Living Social?
    Why didn't Apple just release the iPad Mini as thee iPhone5 (as a Phablet)?

    Questions I'm left pondering ...

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    Admin
    Christopher Silva Oct 29, 2012 Link

    Amazon's new Kindle family are very nice. For the money you get quite a lot. I like the iPad mini comparison. Brings the Mini into perspective.

    The loss of 274 mil. brings up the question, why? Just kick Living Social and move on.

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