Amazon Has EXCITING Plans for Kindle Fire
The Kindle Fire was once again the top-selling product on Amazon.com’s (NASDAQ:AMZN) retail store, but it continues to eat into the company’s profit margins with its heavily discounted price. The company clearly does have a plan for how the future shapes up for the tablet, which has suddenly attracted some competition in the form of the Google (NASDAQ:GOOG) Nexus 7, and when it starts turning profitable through its content offerings.
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Discussing the tablet’s future with an analyst during the Amazon’s post-earnings conference call, chief financial officer Tom Szkutak said excitement for the device’s product roadmap was building within the company. “We’re very excited about both the hardware and the content side of the business,” Szkutak said in response to a question from Susquehanna International Group’s Deepak Mathivanan. “We’ve been very excited about the progress we’ve made so far from both the device and content standpoint and we are super excited about the roadmap we have.”
Mathivanan, who also made the point that the device had been around for fairly long now, asked how important hardware strategy was for Amazon in relation to digital content. “We think if you take a look at our devices, certainly it is very integrated, which is great for customers,” Szkutak said. We think it is an incredible experience.”
Amazon announced that while the Kindle Fire tablet was the top-selling product across the website, the top 10 selling items were all digital products. It said the Kindle Owners Lending Library had grown to over 170,000 books, while the Prime Instant Video catalog had expanded to more than 18,000 movies and TV episodes.
The company reported sales of $12.8 billion, up 29 percent, while net income was $7 million, or a cent a share.