Seeking Alpha Seeking Alpha Portfolio App for iPad Paulo Santos,
Think Finance (232 clicks) Long/short equity, arbitrage, event-
driven, research analyst Profile| Send Message| (4,441)    So as
to break my series of negative articles, I'll write on something
where actually did well. By doing what I am going to explain,
(AMZN) managed to increase prices and margins substantially, and
it has already had an effect on its P&L in Q4 2012.  So what was
it?  Back in 2011, when launched the first of the Kindle Fires,
its pricing ($199) for the device was pretty aggressive.
Teardowns at the time showed that the BOM (bill of materials)
approached the price was charging for the device. Together with
other costs from design, warranties, deliveries, etc, it was
pretty obvious that was selling this device below true cost, and
it immediately had a negative gross margin impact on Q4 2011.
Back then, gross margin on 1P sales from fell to just 9.7% from
the more usual 11-12% was showing both before and after that
quarter.  Now,