In the earnings report for Q3 2012, Amazon announced a $274 million net loss. However, the report was not a total shocker to anyone as everyone was aware of the LivingSocial meltdown. According to the reports, the LivingSocial meltdown has contributed to $169 million from the $274 million net loss.
However, what everyone is talking about is how Amazon used the earnings report release function to slam Apple’s iPad Mini as a low-grade device. There is a long bullet-list in the report where they compare then newly released iPad Mini to both Kindle Fire HD models by Amazon.
Some of the points in the report:
When compared with Apple’s iPad Mini, Kindle Fire HD 8.9” has-
- 193% more pixels (iPad mini - 786,432 | Kindle Fire - 2,304,000)
- 56% more pixels per inch
- The ability to play HD movies
- Better audio quality
- Wi-Fi with dual band
- Costs $30 less
When compared with Apple’s iPad Mini, Kindle Fire HD 7” has-
- 30% more pixels (iPad mini - 786,432 | Kindle Fire - 1,024,000)
- 33% more pixels per inch
- The ability to play HD movies
- Better audio quality
- Wi-Fi with dual band
- Costs $130 less
Although there are no rules that say how a company should release their earnings report, starting the quarter highlights by taking on a competitor's product seems a bit odd. However, some say that this is a classic example of turning lemons into lemonade.