Amazon doubling down on hardware, talks about it endlessly in earnings release

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I can’t stress enough how important their own devices are to Amazon’s future strategies and thus to Amazon itself.

And apparently neither can Amazon.

Business Insider Australia points out how much Amazon is talking about its hardware in its recent earnings release:

Amazon isn’t showing any signs of slowing down its hardware ambitions.

In fact, its latest earnings release was so full of hardware device mentions, it would lead many to assume Amazon’s main business is hardware.

Take the first CEO comment in the earnings release, which is usually reserved for how well the company as a whole is doing. Instead, Amazon CEO Jeff Bezos took the opportunity to advertise Amazon’s Fire tablet

The “Highlights” section of the earnings release is full of references to Amazon’s hardware lineup:

Amazon introduced four new tablets, including Fire

Amazon introduced three new Fire TV devices

Amazon launched Fire TV and Fire TV Stick for Japanese customers

Alexa, the brain behind Echo, continues to get smarter with new features

Amazon Dash Button has received an overwhelmingly positive customer response and selection continues to grow

Amazon announced Amazon Underground, a new app for Android phones

Business Insider Australia:

Amazon CFO Brian Olsavsky vaguely explained that its tablets are selling well during a press call held shortly after the earnings report was released.

“What I will say about devices is we’re extremely excited about our roadmap. You’ve seen a lot of new products released in the last few months, new e-readers, Fire tablets, some prices as low as $US50, Fire TV and Fire TV Stick, Echo, Dash buttons, so the customers have responded really well. We’re really excited about the response, we’re going to be building millions more of the Fire tablets than we had originally planned,” Olsavsky said.

The Fire Phone was a colossal flop and Amazon’s hardware division Lab126 had layoffs that made headlines.1 But the Fire tablets, the Fire TV, the dash buttons, the Echo, all these are the future of business for Amazon. Not because there is much money in selling them directly but because they are the first building steps of a new kind of online retail platform that is build for and around a world of connected devices. These devices are the future of stores. Or, more precisely, they will do the jobs for Amazon that stores did for stationary retailers.

The first manifestation of this is the Dash Replenishment Service which is blending connectivity, a distribution platform and convenience into something that gives Amazon the tools to create a potentially strong lock-in long term for suppliers, manufacturers and customers.


  1. The Alexa Fund might be a sign of Amazon choosing a more decentralised approach to building its platform of connected devices. 

11 comments

  1. […] time we had a look at Amazon heavily advertising it’s devices in the earnings release. Let us now have another look at the context for the numbers Amazon released as it’s third […]

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  2. […] devices by Amazon are as we say in the end essentially their aquivalent to […]

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  3. […] place- but they are not great either.) But when you don’t sell the devices for a profit but as a storefront your incentives might not be aligned with making great products, but just with making good enough […]

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  4. […] and the other retailers are essentially acting like suppliers here. When Amazon’s gadgets are its aquivalent to stores, these third party retailers are ‘building’ Amazon’s stores by selling Echo and […]

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  5. […] the Fire tablets sell as well as Amazon wants us to believe they would be wise to publish sooner rather than later a concrete number of Fire tablets in […]

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  6. […] could have different accounts), and, in general, makes it easy to integrate family features into Amazon’s own devices and beyond (think Launchpad or Dash Replenisment Service like initatives for third-party device […]

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  7. […] The question remains wether these gadgets are good (and durable) enough to become storefronts for Amazon. […]

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  8. […] Amazon doubling down on hardware, talks about it endlessly in earnings release […]

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  9. […] Amazon doubling down on hardware, talks about it endlessly in earnings release […]

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  10. […] Amazon doubling down on hardware, talks about it endlessly in earnings release […]

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  11. […] Amazon doubling down on hardware, talks about it endlessly in earnings release […]

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