Stanford EE 204 - Study Notes (2 pages)

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Study Notes



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Study Notes

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Stanford University
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Ee 204 - Business Management for Electrical Engineers and Computer Scientists
Business Management for Electrical Engineers and Computer Scientists Documents

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Amazon and the future of the Kindle 2012 Introduction Jeff Bezos peddled hard on the stationary bike he kept in his personal office at Amazon s Seattle Washington headquarters He often used it when working out tough issues facing the company he founded in 1996 Today he was peddling particularly hard intensely reviewing the myriad issues that surrounded the electronic book market and the great success of Amazon s Kindle Fire electronic book reader His particular focus was on the go forward strategy for the Kindle Fire Competition was increasing both from Apple and from tablets designed to run Google s Android operating system Market Background There are plenty of Android tablets on the market but none have captured a portion of market share that can come close to rivaling the iPad Right now it looks like the most successful of all of them will be the Kindle Fire which Amazon has modified so much that it s hardly recognizable as an Android tablet at all Competition A new report from the Taiwanese tech site Digitimes has sparked the idea that perhaps Google will try for its own super cheap tablet priced to compete with the 199 Kindle Fire Right now there are basically two models for tablet success Apple s and Amazon s Fire really isn t supposed to be an iPad killer it s supposed to be a neat device that just so happens to get people to buy a ton of things from Amazon As evidence of this Amazon is actually losing a couple bucks on every Kindle Fire tablet it sells According to iSuppli a market research firm the cost of the components required to build a Kindle Fire tablet from the battery to the memory to the plastic shell totals approximately 185 Add in manufacturing and assembly fees and that figure rises to 201 70 That s 2 70 more than the 199 price tag on the Fire By way of comparison the 32 GB version of the iPad 2 costs about 326 to build But Apple sells the device for 599 turning a nice 175 profit on each machine Apple gunning for the luxury market has produced a



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