Feeds

Tablet wars set for Apple vs Amazon head-to-head

Content is king. Especially if it subsidises hardware

The Essential Guide to IT Transformation

If Amazon makes enough tablets and prices them right, the company will sell lots of the gadgets, according to Forrester Research's Sarah Rotman Epps.

"If [Amazon's tablet] is launched at the right price with enough supply, we see Amazon's tablet easily selling 3m to 5m units in Q4 alone," she said.

If… If…

Apple sold 7.3m iPads in Q4 2010, and is likely to sell a whole lot more in Q4 2011.

But Rotman Epps has a point. Amazon could be a very strong threat to the iPad's lead in a way that no over tablet has yet shown itself to be.

Amazon, like Apple and unlike most tablet makers, sells content. [Samsung does so too, but it relies entirely on third-parties.]

Unlike even Apple, Amazon reasons it can sell more hardware if it sells the gadgets cheaply, funded by the profits it makes selling e-books and such.

Hence the £111 Wi-Fi only Kindle - and the even cheaper-but-advertising-funded one it sells in the States. Sceptics sometimes suggest all these Kindles are being used by freetards who've Torrented e-book compendia, but Amazon says it is selling more e-books than paperbacks in the States, and more of the digital volumes than hardbacks here in the UK.

Of course, if Amazon decides it can price its tablets to match or beat Apple's only slightly, Rotman Epps may be disappointed. But only numerically. Whatever the price of its tablets, Amazon's Kindle brand is strong, and the company will, like Apple, spend much more on advertising than other tablet sellers. ®

Boost IT visibility and business value

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.