internet marketing magazinedecember 2012 - january 2013
THE STATE OF THE INTERNET
Amazon Going Negative to GoPositive
Amazon’s Kindle Fire media tab-let carries a BOM cost of $185.60,
according to ndings from the IHSiSuppli Teardown Analysis Service.When manufacturing services ex
penses are added, the cost in
-creases to $201.70.
“The Kindle Fire HD, at a retail price point of $199, is sold at aloss by Amazon, just as the basicKindle is also sold at a loss at thecurrent $79 retail price point,”
said Andrew Rassweiler, senior di
rector, teardown services for IHS.
“Amazon makes its money not onKindle hardware, but on the paid content and other products it plans to sell the consumer throughthe Kindle. This is a similar busi-ness model to wireless companiessuch as AT&T or Verizon. They sellyou a phone that costs them $400 to $600 or more to make for a price of only $200. However, they expect to more than make up for that loss with a two-year servicecontract.”
Amazon has a very smart businessmodel of buying the customer inorder to have a captive audienceto sell them ongoing services suchas its Prime service or the newKindle FreeTime unlimited whichis a $4.99 per month subscriptionthat gives access to kids books,games, educational apps, moviesand TV shows.Other services Amazon sells on itsKindle Fire devices to monetise itinclude games, apps, TV shows,movies, magazines, books, musicand audio titles.
Amazon Web Services Now DownUnder
Amazon Web Services has an
nounced the launch of a new AsiaPacic (Sydney) Region, the ninthin its global cloud computing plat
“Over 10,000 customers in Austra-lia and New Zealand are already using AWS, and this is beforeopening our new AWS Region in Australia”
said Andy Jassy, SeniorVice President, Amazon Web Ser
vices.At launch, the Sydney region con
sists of two separate AvailabilityZones (datacenters in separatedistinct locations within a regionwhich are designed to be opera
tionally independent) and willsupport numerous AWS servicesincluding Elastic Compute Cloud,Map Reduce, DynamoDB, SimpleDB and the Amazon Relational Da
tabase Service among others.This is good news for Australasianbusinesses and Internet Marketersusing Amazon’s web services forcompute cycles, databases andstorage as it will result in lowerlatency of services and a betterlevel of support.
E-Commerce Spending On BlackFriday Tops $1B For The FirstTime; Amazon Is The Most Vis-ited Retailer
ComScore is reporting that U.S.retail e-commerce spending was
$1.042 billion, an increase of 26
percent from last year.
the rst time Black Friday sales
surpassed $1 billion in onlinespending”,
“Despite the frenzy of media cov-erage surrounding the importance
of Black Friday in the brick-and-
mortar world, we continue to seethis shopping day become moreand more prominent in the e-commerce channel – particularly among those who prefer to avoid crowds at the stores,”
Score chairman, Gian Fulgoni, in
In terms of specic retailers,Amazon was the most popular e-commerce site by visits, followedby Walmart, Best Buy, Target, andApple. In total, 57.3 million
In this section of Internet Marketing Magazine we cover the low down on what are the big plays thathave happened online recently and how they affect you.
Kindle Fire HD