While scanning the blogosphere, I came across a blog entitled Using a Customer Culture for Competitive Advantage, I was intrigued by the first article that came up about Amazon. The article raved about how Amazon is an innovated company because of it’s mission to save customer’s money. Amazon, from this blog, seems to be a very profitable and holistic sounding company by being customer oriented and not driving up Kindle prices unlike Ipads that are overpriced nearly half of what they are actually worth. But how successful are they really? Amazon is also known for never truly making a profit. Every Kindle they make, they are actually losing money. A study by market-research firm iSuppli last year estimated the total cost of materials for the 3G Kindle at $155.56 – about $33 less than the $189 selling price for the device. Since iSuppli’s estimates do not include the cost of software, licensing, royalties, manufacturing expenses (Amazon outsources production of the Kindle) and a cut for the wireless carriers, analysts suspect Amazon likely sells the Kindle at a slight loss (WSJ). So after reading about how innovative and honorable the company is, it still making as much of a profit as it should be. So is being innovative worth losing profits? In forecasting, I cannot imagine this innovation being a huge success, but maybe this is what needs to happen before the end success comes.