Amazon versus Apple: Is Amazon Stoppable
September 26, 2012
Technology News recently reported on Amazon’s presentation of the new Kindle Line and how it may just take over the tablet market in the article, “How Amazon Stole the Tablet Market.”
According to the article, it looks like Amazon is taking a page from Apple’s book and may be taking over the tablet market. Since Amazon is an online retailer it has been able to turn every Kindle owner into a dedicated Amazon buyer. Since Apple and Microsoft are built around the old IBM model where hardware leads and software and service follows, the competition is unable to compete.
Another way that Amazon is schooling Apple, is through its lower price points:
“Once Amazon figured out the benefits of having a dedicated product pointed at its store and knew how much it could gain from such an offering, it had a subsidization model that would work, and you saw the result last week: two 7-inch tablets priced below where Apple likely can afford to sell product, and a 9-inch tablet that is a whopping $200 less than the comparable iPad.
The products actually have better connections to services and content — that is Amazon’s business, after all — and while they fall short on apps, the price savings during a gift-giving time of the year could have Amazon exit the fourth quarter — at least in the U.S. — as the market leader. (The Kindle won’t be much of an event outside the U.S. this year.)”
So is Amazon stoppable? Since the online retail giant is obviously learning from the mistakes of Microsoft and implementing some industry best practices, it seems that the answer is no.
Jasmine Ashton, September 26, 2012
Sponsored by ArnoldIT.com, developer of Augmentext
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