Publishers and other content providers are also keen to see Amazon succeed in order to balance Apple’s negotiating power. Amazon has formidable friends in Google and Adobe, among others, who have a strong interest in making Fire succeed.ģ. In contrast, Amazon can afford to sell Fire at $199 versus iPad’s $499 since it does not need to make money on the device itself.Ģ. Clones of Apple such as Samsung, HP had a strategy similar to Apple and could not produce a tablet with enough differentiation. In contrast, iPad is the main source of profit for Apple – it barely breaks even on iTunes. For Amazon, the device is the razor that allows it to sell more blades – ebooks and other products. Jeff Bezos, Amazon’s CEO considers Fire as a service rather than a device. Here are my 10 reasons why Amazon has a very good chance to take a big bite out of Apple’s iPad business:ġ. Similar tablets from Samsung, RIM, HP and others have struggled to make any dent in the iPad market. Apple is a formidable player in the tablet market with almost 30 million iPads sold to-date.
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