Tablet Economics: Amazon Kindle Fire Versus Apple iPad 2
21.05.12
The disappointment on Wall Street came because Apple sold 17 million iPhones rather than the predicted (by the street, not Apple’s own guidance) 20 million. At retail outlets, where Apple shares a cut of profits, it’s not likely that Apple would negotiate to sell its hardware at a loss. Apple turns a profit, or at least breaks even, with each iPad and smartphone sold. Yet Amazon would like investors to believe that their weak quarter, and their potentially weak next-quarter, will be offset in the following months, when the company begins selling advertising on the digital devices and when customers start using... The cheapest iPad 2 at Apple. When the iPad 2 began shipping in March, each one cost Apple $325. Take, for example, the iPad 2. This was the first time in years that Apple came up short of the Street.