Amazon Turns Up The Heat on Tablets

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Amazon.com has turned up the heat on the tablet race and fired a shot across the bow of big tablet rivals including Apple and Barnes & Noble. Amazon's revamped Kindle and Kindle Fire products are a force to be reckoned with, and at a price that's too good to ignore. In typical Amazon fashion, the company is probably selling these devices at razor-thin, if not negative, margins in an effort to drive adoption of its ecosystem so it can collect a steady stream of income from repeat purchases. That's a dicey strategy that's paid off for the company, and sharehodlers, very well so far. See more in the following video.

Of course, Amazon is bigger than just tablets: The company is set on disrupting the entire retail sector. Whether you’re looking to own Amazon itself or own one of the companies it's taking sales from, understanding the company and its prospects is essential. That's why we've created this new premium report on Amazon, which runs through everything investors have to know about the company. Our report also has you covered with a full year of updates as key news hits, so click here now to get started.
 

Austin Smith owns shares of Apple. The Motley Fool owns shares of Apple, Amazon.com, and Google. Motley Fool newsletter services recommend Amazon.com, Apple, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On September 09, 2012, at 9:19 PM, H3D wrote:

    Amazon is a bubble with traders playing chicken.

    When someone blinks expect to lose 95% of your investment as P/E falls from 320 to 16.

  • Report this Comment On September 09, 2012, at 10:45 PM, dmvcal wrote:

    Bezos is a genius. This shows that even geniuses can go off the rail. Tablet strategy is bad. Should stick to reader strategy. Tablets cannot ever compete with Apple design, scale, user experience, eco system. Use reader as shopping gateway. Losing a little bit of money beats losing a whole lot: especially on futile cause.

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