amazon is a leader and every publisher needs to be on amazon and work with amazon and make sure consumers and get the content. and also the overall media business is not a disruptive. to answer your question, yes, we will see these negotiations going forward. consumers are consuming more digital and that is not changing. asif machette holds firm paul said they should, who will win in the end? amazon is a giant. >> amazon is a giant and they have the leverage given their 6% share of the e-book market. there has to be a compromise down the road. machette is fighting the fight not only for itself but the industry overall because we'll have to see the other publishing houses follow-up with the deals of their own. they are really having to look as the machette/amazon template for how this relationship is going to go for it. it critical deal not only for machette but in the industry overall. >> ron josey and politics when he. -- paul sweeney. what about the authors who are impacted, we have 2 of the most vocal critics next on "the best of the west." ♪ >> welcome back to the best of west. while

with amazon. amazon responded with its own statement saying we call baloney. hachette is part of a $10 billion conglomerate. they are making clear they want their authors caught in the middle of this negotiation because they believe it increases their leverage. joining me from washington is ron josie and paul sweeney, the bloomberg director of north american research. set the stage for us. how did we get to this point? >> thanks for having me. it is one of multiple partners that amazon does have. each one is in a multiyear contract and here we are six months later with the renewal comment gone. from my perspective, it is amazon trying to take a greater share of the dollars, but pricing e-books to get back to the consumers. i look at amazon as focused out what can consumers do and hachette is looking at what they can do to protect their dollars. >> is amazon being the bully here? >> clearly, amazon's value proposition has always been low price, great selection, and customer service. amazon is under

do you think amazon cares more about amazon, or does amazon actually care about you? >> amazon cares about amazon foremost, the reader second-most, and the author the reader. the reader. i have never been treated as well by any publishers as i have amazon financially. it is night and day. mark is trying to make a different argument about e-book ricing, saying amazon punishes e-book prices that are too low. amazon just or paste -- released a pricing rule. is justt that amazon for low prices or higher prices. they are fraught to mull pricing. what they have right now is publishers charging too much for e-books in large part because of protecting relationships with bookstores, with their legacy print industry. over 30king with publishers around the world, and they have told me they cannot lower the price of my e-book because it will upset bookstores. expert who thinks that publishers are doing a price analysis and making a logical decision -- that is not how these decisions are being made by publishers. they are being made emotionally, they are made because of existing r

what exactly is amazon asking for? >> amazon is asking the government for leeway in terms of how it is testing the use drones jeff bezos was to use for delivering packages. so right now, the testing of drones is centered on a few areas. amazon is saying let us do it in our own backyard, if you will. >> you're talking about the octocopter. people have said this is not happening a time soon. other people of been more optimistic. i don't know -- is it a few years out. >> in this document, they revealed for the faa, they talked about how they have some that can fly 50 miles per hour carrying a five-pound package. they talk about how large portions of the packages they deliver every day are very light, so they lend themselves to this sort of delivery. i do not know if having these drones will be dropping dead at your house anytime soon -- >> that could be quite a few packages. how does this fit into amazon's broader vision of taking risks and world domination? it seems like that is what they want. >> a thing here is speed o

>> well, amazon is all about finding stuff and buying it on amaz amazon.it here, and if we're lucky, it will identify it. come on, fire flies. this may not work. if not, we'll try something else. >> you're walking down the street -- >> a bag of doritos will work. he put it there, and in three seconds, it identified it. if i click on top of it, guess what the first thing is? i can buy it. shop amazon for doritos. >> wow. >> so, this has always been the deal for amazon. get things in people's hands at cost so they will buy things through amazon. >> and this is a hot one. >> this is. there we go. we're in. we're in. it's already, oops, sorry, we have to go back. >> that's a handsome son of a gun. >> it found it immediately. there it is. and of course, the way they're doing this, image matching. but you can identify business cards, numbers, it pulls it right in. this phone is all about a unique experience with the consumer. trying to delight them with things you don't find in other phones. so, in addition to the fire fly, when i'm looking at the phone, it has

let's talk about the amazon fire. you just downgraded amazon stock to hold.der if this is one of the reasons why? "wall street journal" gave a review, which was none too kind. sort of typical of a lot of reviews we've seen for the amazon fire phone. they say the fire is grown-up equivalent after 9-year-old riding a bike with his hand in the air, look, mom, no hand. it is a neat gimmick but it won't get you very far. is that the problem? does amazon have too many gimmicky products? >> i think the from, it is hard for amazon to differentiate themselves in new area such as kindle fire tablets and fire phone. there are already good solutions. hard to get consumers to buy these devices. cheryl: let me ask you about your separate take on amazon and basically you think that this is a buying opportunity. what i found interesting, you noted that you said you have got conviction when it comes to amazon margin expansion. expand on that please. >> yeah, absolutely. i do think that even though we're looking at a pretty serious loss for the third quarter, i do think that t

in addition, there are concerns about amazon cloud computing business amazon web services. google and microsoft started a cloud price for. amazon will start shipping its first smartphone, the fire phone, today. johnsonor at large cory joins us, and aol vice president of products. thanks so much for coming. have you gotten a fire phone yet? >> i'm waiting like everyone else. >> features like seeing things in 3-d. but i'm not a believer. -- >> i'm not a believer. i don't think it will be a hit with consumers. >> why not? >> for amazon to be successful, they need to be one of three things. they either need to be lucky enough to have first mover advantage, which they do not have. >> it is last mover. >> pretty much. >> last mover disadvantage. >> yes, and it's -- and it will have to be something so mind blowing that people cannot live without it. or they have to compete on price. also99 with a contract cory johnson, you were looking at how much amazon is penning on making this phone. did hurt the bottom line. >> i don't think the bottom line ultimately matters to amazon right n

amazon is giving aughters a chance to opt-in or not. if you opt-in, then your books are only available on amazon. they can't be available on barnes & noble.com, the -- >> e-books can only be on this amazon system and nothing else? >> and if you decide to do that, then it might be a good thing, because amazon already has a way, if you're an zohn prime, you can borrow books and most authors, including me, find that a nice source of income. but giving up on -- giving up -- [ overlapping speakers ] or anything else, well, that costs you, too. i think that the way you want to judge whatever happens is just the way -- just the way you were doing. you were doing it. is it good for leaders? , yes. is it good for writers? that remains to be seen. i don't know why amazon is insisting on exclusivity u >> another way to look at this, they are selling streaming literature, streaming music, books that come out in a stream. i don't know a lot of musicians who made a lot more money by streaming versus individual purchases of songs. >> or albums. >> yea

the intraquarter, revenue trends spiblizing or mod lefty accelerating at amazon. we like amazon.er pick. like amazon for the print and for the next 12 months. >> mark mahaney, after a heck of a quarter from facebook. thanks. >> thanks, jon. >>> when we come back, we mentioned it. amazon's earnings are tonight. what was the company doing 19 years ago? we have a special bezos throwback. first a throw forward to rick santelli. what are you watching after the break? >> a full plate, yield of 244. how it held. and also talk about gdp. wednesday, first look at second quarter. what are the estimates? and last, but not least, whenever inversions are in the same sentence as patriotism, run the other way! all after the break. so tell me about that at&t best-ever family pricing thing. its ten gigs of data to share with unlimited talk and text, and for a family of four, its $160 a month. $160 a month? sign us up. um, maybe we sign you up at the store after this. right, 'cause this is the... food court, yeah. it's the food court. at&t's best-ever family pricing. for instance, a family of four

amazon is a juggernaut. you can't go up against amazon.not, after this run of barnes and noble going to recommend that stock. fred in florida, please. >> caller: i really enjoy your show. >> thank you. >> caller: this is fred in florida. okay. my question is about dds, dillard's. it's had a good run this year. do you think it will go higher and would you buy it at this rate? >> the retail -- the retailers that have been strong have been remaining strong. dillard's is in a breakout moment for its retail business and dillard's will remain strong. all this said, let me caveat this. retailers are my least favorite group in the stock market with the exception of utilities because of what i've been citing the last few days, which is hit or miss nature of retail made it so the group i find to be uninvestable. find other areas, old tech or financials are cheaper. the industrials are. two of the markets beloved cult stocks are coming back with a vengeance, amazon and netflix. charts suggesting you go with amazon, but there is too much overvaluation

this spending is not stopping at amazon. jeff a's is is still sinking money into everything from building ash from the film centers to amazon prime to the new phone. of $126ost a loss million, its largest since 2012. totaled $19.4nses billion, edging out revenue. investors may be losing patience with the spend first strategy. shares are tanking in after hours. winning me in the studio is cory johnson and our bloomberg news reporter who covers amazon. and a bgc partners technical analyst. colin, shares are down almost 10%. what is your take? >> when the shipping is free, the profits don't come easy. quarter forugh amazon and you are seeing a new pattern developing in 2014. quarter, thent the stock has been trading often used to snap right back. it has been slowly grinding off and we have losses, close to $20 billion in revenue and you can't make money? for the september quarter, we've the juneger loss in quarter, so investors are getting increasingly concerned that even though we have revenue growth, these expenses are not go

we will stay with amazon. fire,artphone, amazon goes on sale today. entry into the industry dominated by the veterans. apple, samsung. joining me now is someone who has had a chance to test the device. he has one with him. senior electronics editor at consumer reports. it.macy it -- let me see looks like an iphone. like it? >> i have fun with it. the one thing that irked me, a lot of people reported this, it locks out the google ecosystem. it is technically an android phone but you cannot google maps and a lot of things people like using on an android phone. it is a unique experience. they've redesigned the interface so it looks like nothing else anyone ever used. up an important point, this is the first generation phone. we're looking at the sixth plus iteration for the iphone as well as multiple samsung phones. there will be a lot of kings, will that be a deterrent? >> it has two compelling features, the 3-d effect is hard to duplicate on the camera. it has to be looking at a person's face. the other thing -- this is good for both amazon and the use

so, brad, why is he going to amazon? what is amazon doing in wearables?> amazon wants to compete everywhere its customers are. the fact that jeff a's has spun up a wearables project at amazon is not surprising. it has been pursuing image recognition for a long time. it bought a company called snap tale in 2009. you can scan barcodes and recognize the world. that makes more sense if it is mounted on your face or your wrist than it does on a phone. i expect them to be there at some point. >> the firefly thing -- i think that is the most significant phone announcement. they changed their iphone app, using a similar technology to firefly, amazon. essentially, if you take a picture of an object, you can see these images as it tries to recognize what you are using, and catalogs that, and figures out how you can buy it on amazon. that is a really interesting way for them to take the change from desktop computing shopping to mobile shopping, and make amazon a much more prevalent thing there. whether it is glass or the phone, having a guy who knows how people -- h

amazon is entering a market. >> reporter: amazon's c.e.o. introduced the online retailer's big play to heat up the smartphone wars, the fire phone. >> it is gorgeous i can't wait for you to get your hand on it. >> the way you hold or look at it affects what you see - from three commenceal images to scanning. it shows anything, from printed adds to tv screens. but above all, the gown acts like an amazon vending machine, integrating with stars and services. taking on apple's iphone and samsung's galaxy, the top two phones, costing about the same as the fire, $200, could be impossible as microsoft and google have discovered. in the first quarter of 2014, samsung topped smartphone sales with 85 million units. apple followed with $44 million. the next competitors were from china. that's why analysts say amazon would have been smarter to attack the vulnerable end of the market. chinese upstarts have eent into sam cunning's dominance by offering similar smartphones. apple's momentum depended on the response to two iphones with larger screen sizes.

amazon says it gave refunds for unwanted purchases. microsoft ceo satya nadella is shifting the company mission from devices and services to productivity, mobile, and cloud. in a new letter to employees he writes he also says that microsoft sees plenty of opportunity in mobile. new reportmes amid a that microsoft may still have a bright future selling its windows operating system. pc sales fell just 1.7% in the second quarter, the smallest quarterly drop in at 2 years, as tablet shipments decline for the very first time, falling to 56 million units in the first quarter. what is the future of tablets, pc's, microsoft? , a researchall down analyst. the pc may be alive but it sounds like the tablet is dying. what is going on? >> what you are fighting is that these categories are settling out. it was an interesting dialogue the last few years that declared the death of the pc, that people was and we need these lean back consumption tablet devices. what we're seeing is that these low-end tablets have propagated many kinds of uses but they h

bigger than amazon. they are huge. they vin credible resources but from the pr standpoint, there are a lot of people feeling very up set that they are trying to force the market to do their bidding and not let the book market decide what it needs on its own. >> the end is to be determined. peter, thank you very much. >> pleasure. >> jeff: the-- of dubai says wants to build the mall of the world. the project would encompass 8 million square feet and 20,000 hotel rooms. dubai has not said when the project will be finished. still ahead here, the faces of mt. rushmore and the face of the carver who put them there. high-risk patients more than lipitor. bad cholesterol... you're going down! yeah! lowering cholesterol is a big deal, especially if you have high cholesterol plus any of these risk factors, because you could be at increased risk for plaque buildup in your arteries over time. so, when diet and exercise aren't enough to lower cholesterol, adding crestor can help. i'm down with crestor! crestor is not right for ever

this new show was made for amazon as an original.t question for her was why go to amazon with a show like this? been a huge amazon consumer for a really long time. but it was because of the head idea and kids and her vision to create a creativity curriculum and bring that to kids. that fits well into what i wanted to do with the program. nothis is a show that is dumbing things down. you talk episode, about pointillism. i'm learning things about the world of art to a show like this. amazon clearly focused on kids programming, but educational program. >> i have a background and childhood development and we research everything we do. we never done anything down for kids. we expose them to expressive vocabulary and expose them to making crafts and i'm excited because we are showing the masters, picasso and then go and ask will -- exposing kids to an amazing art greg gillum. >> amazon has this process they launch into original shows where they will pick up a pilot, show that to their viewers, get some feedback and make a final decision. w

i'm an amazon prime customer and buy a lot of stuff on amazon. the effort is to convince me i need to live more of my life on amazon, it's not just the buying of goods. they want to be the netflix of your phone. >> absolutely. they have worked in features from multiple other apps. you can take photos and it recognises it. you can recognise music by sound, like shaz am and other programs, they are built into a firefly app. it can be successful, but the problem is to remove the friction, it has to work pretty much every time. right now, from what we have seen, firefly misfires sometimes. maybe one out of four times. in the time i used it and other folks in my staff, it works well about 75% of the time, but the other 25%, it's exceedingly frustrating, at which point you obviate the need. you do the opposite thing that you wanted to. it could improve. as it's used by more and more customers, the way it works is better. i don't think it can accomplish what they are setting out to do. >> thank you for your time. michael gore moun is an editor-in-chief.

he has been with amazon for a long time.his is a company that is not afraid to spend, whether on the warehouses or devices that ultimately get sold at cost, or now whether it is making original tv shows. this is not a cheap business. if you want to be a standout, there are shows that we talk so much about, whether it is "house of cards" or "game of thrones. thrones .a." they were clear that it was willing to spend. >> the idea that these shows have lower budget and maybe the shows they enjoy on tv now or takinge cast were significant pay hits to work on amazon shows. i can assure you that that is definitely not the case. the priority for us, as i said, is creating shows that our quality, that people care about, and shows that will last. i think we have stepped up to really do that. >> we are now gearing up for the emmys. there was a thought that maybe amazon's originals might get some attention like "alpha house" but his goal is to have people talking about these shows that the award ceremonies, the way that netflix has had

amazon is expecting loss.e wants to hear about that. >> they have been doing a lot of things. set-top boxes. they are very ambitious. starbuck has been hedging coffee prices and doing well with food. we'll see how well. up 1.7% right now. david: homebuilders taking it on the chin. new home sales are working. dr. r horton, biggest loser down 11.5%. earlier in the week, new home sales. liz: nicole, caterpillar, it may not be sexy name in the world. matters to the global industrial picture. >> i think it is sexy too. really all about engines. really do well with engines. [closing bell ringing] david: i got to tell you, little-known secret about, 1987. that is the number, right, liz? 197, on s&p. look at that number. exactly 197.77. may rise a little bit above that to 198. we're close to record on s&p. unfortunately all the other indices couldn't pull out a win today. but it wasn't a bad day. the way things were looking at one point. they were going pretty far to the south. just about flat on the dow. russell is b

, stephen colbert has come out against amazon but also some smaller self-publishers are supporting amazon. amazon seems to have it's financial leverage but are they losing the p.r. war. >> amazon certainly has the financial leverage. they are on track to be the second largest retailer in the united states. in their first-quarter results they just nudged out home depot. wal-mart is the only retailer in the u.s. bigger than amazon. they are huge. they have credible resources but from the p.r. standpoint, there are a lot of people feeling very upset that they are trying to force the market to do their bidding and not let the book market decide what it needs on it's own. >> the end is to be determined. peter, thank you very much. >> pleasure. >> jeff: the leader of dubai says wants to build the mall of the world. the project would encompass 8 million square feet and 20,000 hotel rooms. dubai has not said when the project will be finished. still ahead here, the faces of mt. rushmore and the face of the carver who put them there. pitor. bad cholesterol... you're going down! yeah! lowering chole

amazon continuing to do what amazon does. in this environment, facebook to invest in, alibaba coming up. >> how much better does alibaba lo look by comparesing? >> amazon didn't have many comps. always the high fly always looking ten years in the future. you couldn't compare it to anything. when you see companies like alibaba and facebook who are looking long term, making moon shots and also insanely profitable, how does amazon respond? last hour, jim stewart of the "new york times" said amazon neepds to take one quarter out, show investors it can make money and go back to what it was doing so people were be quiet again. >> sorry. it's jeff bezos. did it since he started the company. this is what you buy when you buy this company. there are comparisons to alibaba but they don't know original content yet, which they may have to do. depends how you growth. alibaba will face growth issue, it's so big. move to the united states or elsewhere. every company shrike this. to me this is typical of him what he does and investors are co

amazon is going to do everything it can to push you towards amazon.hat's whied build aes media streamer, tablets and a smartphone, right? so it all kind of makes sense. >> it does, jordan brooke, thanks for your thoughts. >>> starbuck's profits rose. higher transactions and customer checks. >> another quarter filled with records for starbucks, even though shares went down after hours initially perhaps narrowed full year guidance on the earnings side, the company beat on the top and bottom lines with record $4.2 billion in third quarter sales. that's up 11%. and it had 22% earnings per share growth at much cents. that's a penny better than estimates. comp store sales around the world grew 6%. but in the u.s. and china, they grow 7% and operating margins hit a record 18.5% in large part because starbucks raised coffee prices during the quarter, while at the same time it had hedged lower coffee costs for the entire year. the company is rolling out new initiatives like carbon ated drinks and it lower its full year earnings per share guidance between 265 a

it was because of the head of amazon kids.d vision to create a creativity curriculum and bring that to kids fit so well into what i wanted to do with the program. >> just to be clear -- this is a show that is not dumbing things down. the first episode you talk about art. about pointilism. amazon clearly focused on not just kids programming, but educational programming? >> exactly. i have a background in child development. we research everything we do. we never dumb anything down. we are exposing them to all of this expressive vocabulary and making the process of creating crafts and trying to solve problems with art. we are showing picasso and van gogh and exposing kids as much as possible to an amazing art curriculum. >> amazon has this process of launching original shows where they will pick up a pilot, show that pilot to their viewers, get some feedback, and then make a final decision. what did you learn as part of that process? >> it was a huge focus group for me. we go out and talk to kids all the time and parents and for

for so amazon really did price the phone competitively i don't think pricing is going to be its issue though i think the problem with the fire phone is there and so you're entering the market relatively late with a device that frankly isn't all that much different everybody who's going to buy a phone smartphone has a smartphone today one in two year upgrade cycles are relatively common so i can see a lot of people picking one up just to try it but honestly i've used the phone it's not that exciting it's no different than any real hand handset from android and frankly it's actually a lot more limited because at amazon hasn't really done a good job with their app store and they haven't provided nearly as many apps as you can find on the general google play store i think overall for amazon this is going to be a lot like the kindle fire tablet it's not going to be number one in market share it's not going to be number five in market share but it'll be a few million units for amazon which will certainly be profit for amazon from years to come one thing you have to understand about that com

the publishers have a much harder time walking away from amazon than amazon would have from walking away from publishers. >> reporter: amazon made a bold offer to get authors and public opinion on their side proposing they give 100% of e book revenue to authors during negotiations. hachette said no, we'll continue to negotiate in good faith. amazon's response to hachette's offer, we call bologna, it is part of a $10 billion global con glomerate, they can afford it. >> if amazon wins, consumer prices could go down. >> reporter: the big question, whether amazon will use this stand off to cut publishers out of the equation and convince more authors to public directly on its platform. for "nightly business report." i'm julia boorstin in los angeles. >>> fewer airline flights arrived on time during the month of may. the department of transportation out with the monthly rankings. the nation's 14 largest airlines for on time performance, overall, 77% of all flights arrived on time that month, which means it arrived within 14 minutes of schedule. at the top of the listwith a 93 hawaiian airline

redacted tonight them sacks is in the senate sitting down with me in today's big deal to discuss amazon profiting off of your kids in our purchases not amazon you want to miss a moment and it all starts right now. no profit no assets no revenue no problem at least it wasn't a problem as of last night for tech start up sync technology but then then the smore name happened now sync stock which is trading on an unregulated over the counter in u.s. exchange captured the attention of market watchers when it soared to an i pod being twenty five thousand percent yes i'm reading that right twenty five thousand percent over the course of a three week period to a peak market cap of more than four billion dollars shares of the bully's based company which is described in filings as a social media enterprise went from ten cents on june seventeenth to a high of twenty one dollars and forty nine cents early thursday morning before falling in the late afternoon and trading at just over thirteen dollars a share by the time markets closed on thursday now appears to be presenting itself as a social networ

you have a novel idea for amazon. >> i got this idea for amazon., we're not focusing on short-term profits. that's obvious. my idea is, come out and say, this is my suggestion, come out and tell us, investors, just one quarter say, we are going to focus on short-term profits. we want to show we can make money if we want to because people are starting to wonder, is this like the emperor's new clothes go on here, spend, spend, spend, some day you make money. go through there. all you have to do, just step up and shock us with a profit one of these quarters to show you do have some market power. >> i know investors would like to see them do it. don't know if they will. >> then if he -- they go back to being believers again. the pot of gold is somewhere at the end of the rainbow. >> jim stewart, new york times, thank you. >>> let's go over to seema mody. >> the fast casual style restaurant chain el pollo loco going public here on the nasdaq under the ticker symbol loco loco. it priced at $15 a share, raising $107 million in its ipo. currently trading w

amazon's position is strong. you will see more tomorrow within they have their reinvent day in new york. >> is there more value to ary tail front end than an amazon, which is hard to use like an average user? >> i think am son will say they serve it all. few are, if you want it as completely simple as possible, it will cost you more. but that package is available. >> rack space is relatively easy to use. is there a value? >> i think that's more of a myth in the marketplace i think that amazon provides basically every tier. if you look what you are paying incrementally. are you going to take the time to learn it for yourself? you may want to. >> in terms of the reinvent day tomorrow in new york. what are you expecting? >> i think we will see more as a follow-up to their mobile phone. you will see them wanting to do more as a possibly developer. maybe as a way of helping them build their experience more wage on amazon where they don't have to think whether it's amazon or ios. build it in one place, you can control

you can see amazon or yahoo!in and decide they want to get in and quickly create a competitor. both of them have tremendous growth in terms of revenues, but on anr are profitable annual basis. where are they in this process? could the deal, undone? >> the deal could definitely come undone. and the is not done expectation is next week, the deal gets announced. it's like a mostly stocked deal, two thirds or one third with stock and cash, but they are pretty far along and that's why we picked up on it. it was getting down to the final strokes. >> thank you very much. let's get a look at some of the other market moving headlines to su keenan. that's not gaining any after-hours trade. held, d.r. horton stocks the most in almost five years. the company reporting its net income fell to 103rd teen million dollars, short of estimates. and ken griffin, the founder of citadel filed today for divorce from his wife were 11 years, citing irreconcilable differences. those are the top headlines. back to you. >> heart ache to my

while amazon waits for an answer from the f.a.a.ut shipping plans, anthony mason tells us deother government agency, the federal trade commission, is suing amazon over its sales practices. >> reporter: nine-year-old ryan marshall loves playing games on his parents' phone. >> all the stuff you want, you can get. >> reporter: the game apps are free, but to progress in the game, you often have to pay. >> you just press "buy". >> reporter: which ryan did without his mother knowing, until she logged on to her bank account. >> i find out there's $300 missing. and i said, "i don't remember spending this type of money." >> reporter: kids, lashawn marshall says, are tempted. >> you don't know till you get the bill in the mail. >> reporter: the ftc, in its lawsuit, alleges amazon illegally billed parents for unauthorized charges like this. >> this is clearly a problem and amazon was aware of it. >> reporter: melanie is with the fcc's bureau of consumer protection. >> for 2.5 years, they've allowed the kids to incur charges without parental in

which will certainly be profit for amazon from years to come one thing you have to understand about that company is seventy billion in revenue it one percent margins still isn't all that much a profit for amazon what they need to do since they're really giving up all of their profits are the people who are carrying their inventory selling all the games and toys and books and things that amazon sells amazon really is now in the business of selling digital goods that's where all of its margin comes from and every million phones every million kindles every million kindle fires you can put in somebody's hand that actually profit growth for amazon and i'll be the first time since this company is founded that we're really going to see any significant growth on the earnings side so i think the fire phone is good for amazon even if it's not going to necessarily like the market on fire this first day now google announced that it will shut down the or coke social network in september and the facebook phone was a total flop as well now amazon comes out with a new phone so here's the question w