You Don’t Say?

Cameron Kaine, for Seeking Alpha, posted yesterday: With many investors (including yours truly) ready to proclaim retail and technology giant Amazon (AMZN) as the No. 1 contender to Apple (AAPL), this makes its upcoming earnings announcement on Tuesday all the more interesting. and: It was an instant success and was termed the “iPad killer” – […]

Cameron Kaine, for Seeking Alpha, posted yesterday:

With many investors (including yours truly) ready to proclaim retail and technology giant Amazon (AMZN) as the No. 1 contender to Apple (AAPL), this makes its upcoming earnings announcement on Tuesday all the more interesting.

and:

It was an instant success and was termed the “iPad killer” – much to the dismay of Apple investors.

Today, Stu Woo and John Letzing for the Wall Street Journal reports:

The Seattle-based e-commerce giant on Tuesday reported fourth-quarter revenue of $17.43 billion, up 35% from a year earlier. But profit plunged 57% to $177 million as the company continued to spend on warehouses, technology and its Kindle electronic devices. Amazon’s operating expenses rose 38% in the quarter from a year earlier, exceeding its 35% revenue increase.

Sounds like Amazon is really challenging Apple’s top spot…

Andrew Winston:

But would anybody in their right mind be disappointed with $16.5 billion in quarterly cash flow instead of $17.5 billion?

Yes, Wall Street. But then again you did qualify that with “right mind”.

This is an incredibly over simplified view of the problem — paying more for manufacturing doesn’t solve the core issue. The core issue is that such poor labor standards are acceptable in China.

Giving Foxconn more money just means that Foxconn makes more money.

Apple could demand that it be passed along to the employees, but let’s be honest because that is going to require a lot of double checks.

Back to the above quote — while $16.5 billion and $17.5 billion are still huge numbers, Wall Street tends to not reward declining numbers. So yeah, there would be disappointment — especially so if Wall Street were to find out that Cook just decided he would like to make less money.