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

Authored by: Steven Blum — Oct 26, 2012

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)

Source: Forbes

Steven Blum has written more than 2,000 blog posts as a founding member of AndroidPIT's English editorial team. A graduate of the University of Washington, Steven Blum also studied Journalism at George Washington University in Washington D.C. for two years. Since then, his writing has appeared in The Stranger, The Seattle P-I, Blackbook Magazine and Venture Villlage. He loves the HTC One and hopes the company behind it still exists in a few years.

2 comments

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  • Christopher Silva
    • Admin
    Oct 29, 2012 Link to comment

    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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  • CJ Brown Oct 28, 2012 Link to comment

    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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