Amazon CEO Jeff Bezos recently confirmed Amazon's hardware strategy, namely that it sells devices at "no profit" in expectations it will create new revenue streams based on the sale of content.
"We sell the hardware at our cost, so it is break-even on the hardware," Bezos said. Apple does the reverse, selling content at minimal or low profit as a way of selling more devices, where it makes its money.
Friday, October 12, 2012
Amazon CEO Jeff Bezos Confirms Strategy: No Profit on Kindles, Money From Content
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
Which Firm Will Use AI to Boost Revenue by an Order of Magnitude?
Ultimately, there is really only one way for huge AI infrastructure investments up by an order of magnitude over cloud computing investment ...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
Is there a relationship between screen size and data consumption? One might think the answer clearly is “yes,” based on the difference bet...
No comments:
Post a Comment