Jeff Bezos's Strategy With Amazon

John Gruber, commenting on MG’s article: “I’ve harped on Amazon’s seemingly eternal lack of profitability as much as anyone, but when you think about it and study their business, it’s not that they can’t turn a profit. They’re not burning through money like they were in the go-go ‘90s. They simply choose not to turn a profit, and instead invest everything in operations and low prices.”

Mathew Alexander of One37.net and the popular podcast Bionic, in an episode from quite some time ago, made a similar point responding to the hyperbole following an Amazon earnings announcement painting the company as an unprofitable and therefore doomed company. Flying in the face of the familiar rhetoric the Apple community almost univocally spouts, the notion that instead of simply being unable to make money Amazon instead pours almost all of its profits back in to the very ecosystem that created it in the first place rather than saving those funds for a rainy day as Apple does is a very interesting — and apparently novel — way to think of the company, and one that lends a great deal of credence to the notion of Amazon emerging as a major player in the tech sector sometime in the near future.