Why Amazon doesn't scare Apple

Discussion in 'Travel Technology' started by ACMM, Nov 7, 2011.  |  Print Topic

  1. ACMM
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    ACMM Gold Member

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    Contender or more fragmentation?

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    Why Amazon doesn't scare Apple

    http://pulse.me/s/2VUfc


    (WIRED) -- Ever since Amazon unveiled its 7-inch Kindle Fire tablet in September, a lingering phrase has been attached to the low-cost, high-profile device: "the iPad's first true Android competitor."

    Unlike all the Android tablets that offer 10-inch screens, roomier storage capacities, built-in cameras and 3G support, the Fire will ship with modest hardware specs. In fact, the Amazon tablet would seem ill-prepared to take on the iPad, if not for a trio of would-be Apple-slaying features.

    The Fire will be insanely inexpensive at $200. It will hook into Amazon Prime, the company's two-day package shipping and instant movie rental service, for just $79 a year. And the tablet will be supported by the all brand I.D. and operating efficiencies of a digital storefront that people already use daily to buy everything from physical goods to digital downloads.

    In total, the Fire has the potential to be the first Android-based tablet to give Apple the chills. Amazon's digital storefront alone should provoke concern.

    But, no, Apple isn't fazed. Barclays analyst Ben Reitzes recently met with Apple's Tim Cook (CEO) and Peter Oppenheimer (CFO), both of whom have a more pessimistic view of the Amazon Fire's future. Stated Reitzes, in a research note first reported by Business Insider:

    (Posted from my milePoint enabled iPhone)
     
  2. Lufthansa Flyer
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    Amazon is late to the party. Now that apple has infiltrated every home with 2 or more devices, its hard to turn to something else. Ask me, I was "victimized" :)
     
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  3. cordray2643
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    "i" was too! :)
     
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  4. FlyingBear
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    Yeah, with growing popularity of BMW and Mercedes sales, Hyundai has been going downhill for nearly a decade.
     
  5. Lufthansa Flyer
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    Hyundai, now theres something not to own.....:eek: Think I'll stick to driving one of the former and not the latter
     
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  6. jbcarioca
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    Even though Hyundai is better built, has better warranty, and is a better car I still have a BMW.:cool:
    Of course I have six Apples too, so what do I know?:oops:

    My iPad is a pretty good Kindle though, as I am realizing more now that I've junked my Kindle DX.
     
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  7. FlyingBear
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    FlyingBear Silver Member

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    I am pretty sure that no one should put that much effort into missing the point.
     
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  8. Lufthansa Flyer
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    Doesnt one of the Hyundai's come with an ipad that has its owners manual loaded on it? We're on 6 apples and counting as well....
     
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  9. jbcarioca
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    The Equus does, but they're replacing it with a paper one for the 2012 model year, claiming the IPad was a promotion, not a permanent thing. My BMW came with the English language manual designed for iPad, but the Portuguese version only on paper. I suppose I understand that.:rolleyes:
     
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  10. icurhere2
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    The question is whether the new Kindle Fire and new Nook grow the market or cannibalize the market. There are many who will use those two devices as an entry to the market when the user only desires specific functions (for instance, my Fire arrives next week and I had no interest in paying for the iPad).

    Further, the new Nook has features lacking in the Kindle Fire, is half the cost of the iPad, and B&N operates more than 600 college bookstores with many students seeking e-books. AAPL ignoring one low-cost competitor with an advanced content distribution network and another with an advanced physical presence is at their own peril.
     
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  11. studio253
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    studio253 Silver Member

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    The new units are finding a nitch with older more frugal shoppers. People that want mostly an e-reader and don't want to spend crazy Apple prices. I bought my mother a Kindle last year and loaded it up with books for her so she's not dragging all the books with her when they're snowbirding North and South and she and my Dad love it so much she bought my Dad his own because he was always borrowing hers. They could give two more away as gifts and still be ahead of the game versus an entry level iPad.
     
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  12. FlyingBear
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    Thanks for elaborating on the point I was trying to make! The article might as well have been titled "Apple planning new iPad, Amazon is not worried". These are different markets with distinctly different price points and products/ecosystems, a lot of the comparison going on is simply pretending that they are after the same types of customers.
     
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  13. Scottrick
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    Scottrick Gold Member

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    Yes. I like Apple products most because they are self-contained. I might buy a mouse, but that's about it as far as peripherals. I know the iTunes store is there and you can buy books and music and movies, etc., but I don't really do that. If I did, it would be for use on Apple products. Everything is carefully curated and works well together. The higher price, if any, is a convenience charge.

    Amazon is like a giant bazaar. They sell everything, sometimes so much that I can't find what I'm looking for anymore. It might work, it might not. Now, they definitely have some of the best prices, but I recognize that in exchange for variety and price I'm giving up some quality. If I were going to start reading ebooks and decided to use a Kindle for that, that might mean I wouldn't buy books from Apple, but it wouldn't be the end of the world for them either. And I could still read by Kindle books on an iPad using the app.

    Both companies want you to buy from their stores, but they have different goals. Apple wants to sell you books, videos, and music so that you'll buy more Apple stuff to do that at home, on the go, etc. Amazon has a store to buy books, videos, and music, and it created a device you can use to buy more and watch more but it's the media, not the hardware, that they care about.
     
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  14. canucklehead
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    I fear Amazon will go the way of HP Touchpad, RIM Playbook, Sony Tablet and maybe Samsung Galaxy Tab -- all seem to be good products, but the hardware and software make them costly and people will stick with the mainstay -- which still enjoys a 'cool' cache, so ho does one convince a consumer to stray from something that is hip and does the job.
     
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  15. rwoman
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    I am happy with my cheap car (Ford Focus)....leaves room to go do other things, like get on airplanes. :)
     
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  16. jbcarioca
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    I am a confirmed Applephile and Amazonphile too. I did have a Kindle but now just use Kindle for iPad. Almost all purchases I make are online other than groceries, and even some of those. Amazon lets me choose between delivery at my home in Brazil, my postbox in the US or my place in France. Delivery is always perfect and the prices are close to the best if not the absolute cheapest.

    I suspect B&N will eventually succumb, but Amazon will continue thriving once they get beyond the enormous capital outlays they've just made. I do not think Apple will have the dominance it did, thanks to Goole and others, but i think they'll thrive.

    the world is changing rapidly so I don't have much faith in my predictions or anyone elses.
     

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