Month: October 2011

Amazon’s P/E ratio and business strategy.

Two days ago, I started this post:

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As I mentioned before, Amazon’s business strategy looks like cheating:

  1. Sell product for a loss
  2. Sell a lot of that product
  3. ???
  4. Profit

Amazon lost money for many years.

Their most recent financials show them making 3% profit.

That is not very much.

By comparison, Apple makes ~25% profit (though Apple is on the high side of the spectrum).

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…then, just today, this report came out:

Amazon profits dive

Perhaps I was on to something.

You don’t want an Android phone

Reasons you don’t want an Android phone.

The USER EXPERIENCE

The LAG

The SCREEN

The ETHICS

The APPS

The INABILITY TO UPDATE

The BATTERY LIFE

Reason you might want an Android phone:

  • You have a blind hatred for Apple. Which means, either:
    • you are human. Sadly, a good number of people have blind hatred. For example: racists, religious extremists, etc.
    • you suffer (innocently) from the Dunning–Kruger effect.

Relativity, Quantum Physics, Mass-energy equivalence, the LHC

Today was a fairly typical day in Senior English.

We discussed:

  • Relativity
  • Mass–energy equivalence (E=mc2)
  • Quantum Physics
  • Anti-matter
  • The neutrinos themselves were subject to Relativity, hence, they didn’t exceed C
  • Black Holes at the LHC
  • Dark matter
  • Dark energy

We also got in three freewrites (“What do I do best as a student?” “What I left behind to be here.” “What _________ does best as a ___________.”) and learned Chiasmus.

A typical class. And typically good.

Amazon Kindle Fire. Sort of.

Two thoughts on Amazon.

First: Amazon’s business strategy seems like cheating.

  1. Sell product for a loss.
  2. See a lot of that product.
  3. ???
  4. Profit.

Something doesn’t add up. Who is being screwed?

I have heard that Amazon uses the Walmart strategy of pinching suppliers. Except Amazon’s suppliers are the content creators, the authors and artists.

Merlin Mann explained the difference between Apple and Google business strategies this way:

Google: Thanks for looking at 100s of ads you hate.
Apple: Thanks for buying 100s of dollars of stuff you love.

So, would Amazon be: Thanks for buying 100s of dollars of stuff for so cheap that someone isn’t getting paid?

Second: Why is the Kindle so primitive and cumbersome?

People who own a Kindle, love it. That might be all that matters. My experience with a Kindle is limited to helping two people set up their Kindles (now called Kindle Keyboard). And it was horrible. The two people were thrilled. But I was literally offended by the primitive, cumbersome way you interacted with it. The keyboard was embarrassingly horrible, navigating was horrible, browsing the internet was horrible.

Almost a third point: Why seven models? (Is the DX still available?) Aside from the fact that every business (except Apple) operates that way: make a confusing number of products; give them confusing names; operate on poor revenue-to-profit margins.

Almost a fourth point: Amazon’s PE ratio. !?