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Amazon and Google are undermining mobile pricing, and that may hurt everyone

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  • Nov 19th, 2012 2:35 pm
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Deal Addict
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ichpen wrote:
Nov 17th, 2012 8:45 am
Read before you post.
Heh - I suggest you take your own advice.
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Nov 18, 2002
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Sorry but you suggested they're attempting to "annihilate the video streaming industry". Here's the article. It's quite short and here's the crux of it:

"The CEO [NETFLIX] says that Amazon will pose a legitimate threat to its streaming video dominance, but that day is still a long way off. He claims that the Kindle purveyor is losing between $500 million and $1 billion a year as it builds its empire and secures licensing rights. Of course, Hasting's comments during an interview with Dow Jones are largely speculative; based on the value of deals in which the two have competed directly"


I'm failing to see annihilation here. Amazon is playing catch up here and will be for a long while.
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Mar 25, 2011
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Guelph
Nigel wrote:
Nov 4th, 2012 12:24 pm
Maybe the nexus 4 is cheaper cause it only has a 4.7” True HD IPS screen vs the very expensive to produce Super HD amoled screen on the S3?

Edit: it seems that IPS is a nicer screen overall with richer colors but what about price and battery life?
It's preference. I loved my IPS when I had an iPhone but too bad I had to transfer to Wind. I've had Samsung phone eversince and I still prefer the IPS.
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time space wrote:
Nov 17th, 2012 7:15 am
Amazon's kamikaze attacks aren't just limited to mobile pricing - they're attempting to annihilate the video streaming industry as well...

Netflix CEO claims Amazon losing up to $1 billion a year in streaming video war
But that's hardly "annihilation".
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Amazon Is a Black Hole Threatening To Devour Corporate America

...via Slate.
Wall Street is on board with an Amazon business strategy that doesn't require it to actually make profits as long as it increases sales volumes. And if you're in any line of business where you compete with Amazon—and Amazon is in a lot of businesses, and seems to get into new ones each year—that should terrify you.

In any line of business where you're earning healthy profits you always need to worry that a competitor will undercut you on price. But normally you can also have some confidence that they'll be restrained in their price cutting by the need to maintain profits of their own. Amazon is totally off the leash in this regard. Wall Street treats it like a brand new startup that just needs to think about growth and can find a viable business model later. Which means that if they come after you, you have no recourse. Your profits are going to shrink, and your investors are going to punish you for it but Amazon's profits don't necessarily need to grow proportionally. They just need to show they can poach your market share.

Be afraid.
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Apr 23, 2011
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It's pretty easy to see why they are doing it.

Take some loses early to make a huge consumer market and ecosystem. Then rake in the profits when they've decimated any competition.

markets are dynamic, so if the company doesn't evolve to keep up with changes, they will become extinct.
This is also exactly what capitalism is about. Exploit and profit.
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Amazon's strategy has always been one of very aggressive expansion. Good and bad but we can thank them for a few things. Opening up the 7" playing field. Breaking apple's stranglehold of the tablet market and introducing the world to the sub $200 tablet.
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Amazon and Google's business strategy is really of little consequence to regular consumers. It would matter more to shareholders. In the regular consumers point of view we're just getting cheaper stuff which is what we all want.
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time space wrote:
Nov 18th, 2012 6:56 pm
The topic of this thread is Amazon and Google pricing practices.
The title of this thread is Google/Amazon undermining mobile pricing. You've taken it left right and center with random articles on everything bad any amazon competitor or investor has uttered or blogged about. End of the day much like your mom&pop corner store should be very afraid when walmart opens up next door the same applies to any digital goods retailer. As a consumer I find amazon (even with our inflated Canadian shipping prices) invaluable for certain items. They fulfill orders like no other etailer and selling through amazon has opened up a lot of opportunities for small business. In the US they're planning same day delivery services and building fulfillment centers all over the place so if anyone should be afraid it's B&M stores.

Are they the evil empire? No more than any other billion dollar company. They just seem to be a lot more up front and aggressive about it not to mention keeping everyone guessing. The article you quoted simply reinforces the belief that investors (whether justified or not) believe that amazon will turn good profits one day or will survive long enough to make more stock holders money. The article talks that amazon posted a q3 loss more than half of which was due to a share loss scheme with one of their acquisitions. It also states that they're selling goods at very low margins which I don't think anyone is questioning here.
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