Why Amazon's Kindle Fire Gambit Is Paying Off

The following video is part of our "Motley Fool Conversations" series, in which developer Chris Bledsoe and senior technology analyst Eric Bleeker discuss topics around the investing world.

In today's edition, Eric asks Chris how traffic to Fool.com has trended recently as Apple stole back market share from Android. As has always been the case, iOS traffic is far ahead of Android, but what's especially surprising is that iPad traffic is twice Android traffic of all kinds -- tablets and smarpthones! That creates an "engagement" problem, with Android users not being as active with their phones. Such engagement issues would be bad news for Amazon.com and its Kindle Fire tablet, since Amazon pursues a strategy of losing money on the hardware and recouping that loss with later sales. However, as data from app-analytics company Flurry shows, Kindle Fire users are far ahead of other Android tablet users in terms of downloading apps. That's great news for Amazon, as it shows that its Kindle Fire business model has a far better chance of paying off.

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At the time thisarticle was published Chris Bledsoe owns shares of Google. Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Amazon.com, and Google, andMotley Fool newsletter services recommendApple, Amazon.com and Google. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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