Replies

To: RoosterRedux

“I for one like the Amazon model. No bricks and mortar...just wire and warehouses. “

Unfortunately the financial returns on the Amazon model are extremely low. Fourth quarter 2012 (quarter ending Jan 29, 2013) Amazon’s net income was $97 million on sales of $21.3 billion, a return of less than 1/2% of sales. For first quarter 2013 Amazon projects sales of $16.6 billion and earnings of $65 million, again less than 1/2 percent of sales.

For the roughly comparable quarter (Apple’s first quarter 2013 ends December 29), Apple earned $13.1 billion on sales of $54.5 billion. A 24% return on sales.

As a shareholder I prefer the Apple economic model.

31 posted on 04/10/2013 5:46:24 PM PDT by Soul of the South (Yesterday is gone. Today will be what we make of it.)

To: Soul of the South

Apple is dependent on its next product. Amazon is dependent only on the market place.

BTW, return on sales is irrelevant to Amazon. Look at (consistent and future) return on investment.

33 posted on 04/10/2013 5:52:13 PM PDT by RoosterRedux (Get armed, practice in the use of your weapons, get physically fit, stay alert!)

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