Amazon Posts Q3 Losses, Defends Kindle Fire HD Against iPad mini

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Amazon Q3 revenues have fallen short of analyst predictions, posting a net loss of $274 million on sales of $13.81 billion. Shares for Amazon stock fell from around 9 percent during after-hours trading following the announcement, and have since settled at a loss of around 2.5 percent. The mega-retailer is feeling the heat in other ways, because Amazon thought it necessary to point out the advantages its tablet has over the iPad mini.

Earlier this week, Apple announced the fourth generation iPad and the iPad mini, direct competition with the 7-inch and 8.9-inch Amazon's Kindle Fire HD lineup. During the third-quarter earnings report, Amazon spent some stressing how its products outshine Apple's, pointing to pixel density, audio quality and cost.

Here are some of the bullet points Amazon supplied:

  • Compared to the iPad mini, Kindle Fire HD 8.9” has:

    • 193% more pixels (2,304,000 pixels vs. 786,432 pixels)
    • 56% more pixels-per-inch (254 vs. 163)
    • Watch HD movies and TV – cannot on iPad mini (iPad mini is an SD device)
    • Better audio with dual stereo speakers and Dolby Digital Plus
    • Wi-Fi with dual band, dual antennas + MIMO
    • Costs $30 less
  • Compared to the iPad mini, Kindle Fire HD 7” has:

    • 30% more pixels (1,024,000 vs. 786,432 pixels)
    • 33% more pixels per inch (216 vs. 163)
    • Watch HD movies and TV – cannot on iPad mini (iPad mini is an SD device)
    • Better audio with dual stereo speakers and Dolby Digital Plus
    • Wi-Fi with dual band, dual antennas + MIMO
    • Costs $130 less

Despite falling short of analyst's predictions, Amazon hit its own estimates, forecasting sales between $12.9 billion and $14.3 billion and an operating loss of between $350 million and $50 million. Shareholders were, however, were not impressed, resulting in the stock drop during after-hours trading. Amazon's new tablets could help it get back on track, but the company has admitted that it's content and the other things you buy with its slates--not the hardware--that make Amazon money.

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