Amazon’s billionaire Chief Executive Jeff Bezos unveiled the new Kindle Fire tablet computer on Wednesday at a lower-than-expected price of $ 199 which is raising widespread and fierce questions about Amazon.com Inc’s ability to keep up with demand and the device’s effect on the company’s already razor-thin profit margins.
Amazon expects it can rival with Ipad with much lower price, convenient appearance, etc. However, some industry participants express that the short supply of some specialized components and the holiday may limit how many Kindle Fire’s can be made out quickly. Besides, other analysts concern about the profit margins at Amazon, too. They express that Amazon always competes completely on price, sucking up losses when it enters new market.
source:http://www.reuters.com/article/2011/09/30/us-amazon-supply-idUSTRE78T04220110930
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