Amazon: Jeff Bezos Is a Genius
|Jeff Bezos, chairman and CEO of Amazon.com, introduces the Kindle Fire.|
In case you weren't around for Amazon's(AMZN) call on Thursday, I will clue you in on the most important part. We could very easily title this excerpt "Jeff Bezos Is a Genius." Cue CFO Thomas Szkutak from Thursday's call :
In terms of the Kindle Fire, we are pleased with the growth that we're seeing and customers are buying a lot of content. And you're seeing that when you look at particularly in North America. When you look at our North American media growth from Q4 to Q1, you're seeing that accelerate. And that's certainly a big part of it. And so we're very pleased with what's happening, and we're going to continue to add more and more content for customers and across all of our digital categories. And we think we have a great value proposition for customers today, and we're going to continue to make that better over time.
Kindle Fire is doing exactly what Jeff Bezos intended for it to do. It is not competing with Apple's(AAPL) iPad. If Tim Cook does what Steve Jobs considered unthinkable and produces a mini-iPad, I hope Jobs's wife pleads with the board to fire Cook. Steve would have wanted that. Under Jobs, Apple never reacted to perceived threats. And, in this case, they would be reacting to what is the farthest thing from a threat.
When Bezos conceived Kindle Fire he did it without Apple or any other gadget maker in mind. Kindle Fire was never anything more than another tool to get Amazon customers to spend more money on everything from stuff to content. Kindle Fire is not a 7-inch tablet; it's a 7-inch credit card. Bezos must sit back and laugh when he hears mini-iPad rumors. Talk about a wild-goose chase.
I bought a Kindle Fire for Christmas. I liked it so much that I bought one for my wife for Valentine's Day. It's a good thing I have a fair bit of disposable income because, if I did not, I would be broke by now. The same phenomenon operates when you buy things on that "tablet" as when you pull out a credit card to make a purchase.