Wednesday, September 28, 2011

Amazon versus Apple Tablets

Marketplace has an interesting story about Amazon's new Kindle Fire. Amazon might succeed where others have be able failed because it might to exploit complementarities. Here's part of the transcript:
And something else is smaller too: the price.

Bezos: It's $199.

Sarah Rotman Epps: You could buy four Kindle Fires for the price of one souped-up iPad.

That's Sarah Rotman Epps, a tech analyst with Forrester Research. Epps says Amazon may be selling the Fire at a loss. That's because the online retailer wants the Fire is to function mainly as a virtual shopping cart.

Epps: Putting this device in consumer's hands pretty much guarantees that they will be a serious Amazon spender.

Loading up on digital content like music and books, and maybe some pots and pans too.

Analysts predict sales of the Fire could top three million this year. The tablet ships on November 15th -- in plenty of time for you know what.

1 comment:

  1. Microsoft did something very similar with the Xbox game consoles.