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Timothy Phillips
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Tim Phillips is CoFounder and Senior VP of Empower Semiconductor. Mr. Phillips also provides high-tech marketing and financial consulting services. Mr. Phillips has held executive positions in the semiconductor industry for twenty years including Vice-President & General Manager of a $140... More
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  • eBay's Savior
    , contributor
    Comments (106) | Send Message
     
    Timothy, the sales drop in CA before Thanksgiving can be attributed to the dropoff from the sales RAMP prior to the sales tax taking place.
    Closer to Xmas, the sales picked up, since AMZN ships all the way until a couple days before xmas.

     

    So there isn't going to be much effect in Q4, altho, the effect will be real over a longer term as customers begin to realize there's no giant benefit price-wise to shopping at AMZN. This of course assumes traditional retailers continue to put the pricing screws to AMZN like they did in Q4. This would be logical for them to do, but not gauranteed as retailers aren't always logical strategically speaking.

     

    so if you're short for Q4 revenue hit, you may be disappointed. If you can hold your short thru 2013, you should make plenty of money as AMZN has begun to be uncompetitive in many areas of their commoditized business.
    17 Jan 2013, 10:19 AM Reply Like
  • Timothy Phillips
    , contributor
    Comments (440) | Send Message
     
    Author’s reply » That is not how the article reads, but only AMZN knows how the Q turned out. There have been several pieces of bad news for AMZN over the past month that do point to a poor Q though. I am not a short for Q4 release. I am short due to long term fundamental flaws in the company business model which are showing themselves more fully as each Q report comes out (check my article on the ASP declines impact on net margin over the long haul). Sounds like we are in agreement on that front.
    17 Jan 2013, 10:39 AM Reply Like
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