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Teardown.com: Amazon Brings Fire to Phone Market

7/25/2014 05:15 PM EDT
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elctrnx_lyf
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Re: Teardown on Xiaomi's Mi3
elctrnx_lyf   8/6/2014 10:25:32 AM
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Defnitely Qualcomm seems to be the most benefited from the Amazon product.

Kinnar
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Re: Teardown on Xiaomi's Mi3
Kinnar   8/6/2014 6:46:24 AM
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Oh may be you are right, but this will not be the strategy of a multinational company to earn profits, all the other giants are also having the same pricing strategies. This is because we are comparing it with Xiaomi it look too much price difference. But if you compare it with any other product from the electronic giants then the price difference is not that huge as such.

goafrit
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Re: Teardown on Xiaomi's Mi3
goafrit   8/6/2014 5:22:05 AM
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>> Need to check that, that may be the only reason of high cost. Besides the better software facilities.

No. The cost is high because there is need for Amazon to start making profits. Wall Street is losing patience with this firm with its heavy spending and constant quarterly loses.

goafrit
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Re: Others agree
goafrit   8/6/2014 5:12:37 AM
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>> They do need some profit for the bottom line.

It is a new change in strategy for a company that focuses more on ecosystem monetization over hardware costs. It is possible they are getting the message from Wall Street on their stock price.

Kinnar
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Re: Teardown on Xiaomi's Mi3
Kinnar   8/4/2014 3:15:55 AM
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I think that Amazon may be providing the library of Kindle supported books free along with this tablet. Need to check that, that may be the only reason of high cost. Besides the better software facilities.

daleste
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Re: Others agree
daleste   8/3/2014 4:39:56 PM
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Also, don't forget the additional costs in manufacturing.  Yield and startup costs can be high at the beginning.  It is good to see that Amazon will have a profit from selling this hardware, unlike the tablets.  They do need some profit for the bottom line.

goafrit
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Re: Others agree
goafrit   8/3/2014 12:10:30 PM
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>> However, what i do not understand in most of the teardowns is the hidden cost estimates that are not considered so that the owner know the true value of the device. 

This is a guidance, I will say. If Amazon places an order for 10 million chips, the price will be different when it is buying say only 1 million units. The expert is providing a guidance and we thank them for that. It cannot be hard science until you know the quantity and discount from the firm.

goafrit
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Re: Revenue Stream and Innovation
goafrit   8/3/2014 12:07:38 PM
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>> I am sure Amazon is going after the recurring revenue coming from video and product selling from Fire instead of from selling the phone.

That is the business model. The question is why they have to make the hardware expensive to execute that. In the past, they subsidize the hardware to enable the evolution of the monetization of the contents.

goafrit
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Re: MS collaboration?
goafrit   8/3/2014 12:06:04 PM
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>> This would have been a good target for MS collaboration.

What do you mean by "MS collaboration", please?

goafrit
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Re: Teardown on Xiaomi's Mi3
goafrit   8/3/2014 12:05:10 PM
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>> This Amazon Fire will lose its pants facing OnePlus One.

What a name for a phone. I think Amazon will not just win because of its hardware. The ecosystem of all things Amazon is very important here.

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