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Amazon Has High Hopes for Its iPad Competitor

nytimes.com

41–50 of 64 posts

Re: Amazon Has High Hopes for Its iPad Competitor

#41
post #26

Apple sells movies, music and books in order to sell devices. Amazon sells devices in order to sell books, movies and music. This.

Obvious follow up: then why not let Apple sell the devices and Amazon sell the content?

Because Apple does not accept that solution?

The chunk they want would seriously eat into Amazon's margins.

Re: Amazon Has High Hopes for Its iPad Competitor

#42
post #37
post #32

Earlier quoted context omitted.

humm..it's a bit like saying that your chance of building a successful search engine, without Google first doing something incredibly stupid, are pretty slim. There's a billion precedents. GM, 3dfx, pre-tick-tock Intel, George Lucas.

The problem with going up against Google is that they offer a superior product to end-users for free . I have no doubt that the iPad will remain a superior product to the Amazon Tablet. However, I also have no doubt it will keep costing more than the Amazon tablet. Consumers care about that extra ~$250. Like Google, the iPad is currently the low-end and the high-end of the market, but unlike Google, it's vulnerable o…

Notice that in my OP, I said "take any significant chunk of _profit_". I'm not as concerned about marketshare as I am about profit. Yes, Android devices are outselling iPhones, but they are generating considerably less profit.

I don't know the latest figures, but iPhones relatively small market share accounted for over 50% of profits last time I saw. Amazon might sell a lot of cheap tablets, but that won't hurt Apple's profits.

Re: Amazon Has High Hopes for Its iPad Competitor

#43
post #36
post #27

Earlier quoted context omitted.

Why? I don't see the precedent. Android phones are overtaking iPhones. Why wouldn't Android tablets?

There's no reason to think Android tablets wont overtake the iPad in future. However, the key difference between the tablet and smartphone spaces is that the masses recognise there are smartphones other than the iPhone. Apple created the tablet market, and consumers know it. The iPhone had a big impact on the smartphone market, but it didn't create it. Apple earned itself 6-12 months of 100% ownership of the tablet m…

I agree..and at that point, Apple might be on the verge of defining an entire product category, which the rest of the market will follow 3+ years thereafter.

I have no doubt that at some point they'll slow down..but like I said in my OP, I'm not ready to bet against them yet.

Re: Amazon Has High Hopes for Its iPad Competitor

#44
I hope that doesn't mean they're abandoning development on their e-ink devices, or relegating them to third-class citizens. The only reason I'd buy a reading device is if staring at it for 2+ hours didn't give me a headache like a backlit tablet does. (And an all-purpose tablet like an iPad still doesn't interest me enough to buy anyway.)

Re: Amazon Has High Hopes for Its iPad Competitor

#45
post #42
post #37

Earlier quoted context omitted.

The problem with going up against Google is that they offer a superior product to end-users for free . I have no doubt that the iPad will remain a superior product to the Amazon Tablet. However, I also have no doubt it will keep costing more than the Amazon tablet. Consumers care about that extra ~$250. Like Google, the iPad is currently the low-end and the high-end of the market, but unlike Google, it's vulnerable o…

Notice that in my OP, I said "take any significant chunk of _profit_". I'm not as concerned about marketshare as I am about profit. Yes, Android devices are outselling iPhones, but they are generating considerably less profit. I don't know the latest figures, but iPhones relatively small market share accounted for over 50% of profits last time I saw. Amazon might sell a lot of cheap tablets, but that won't hurt Apple…

The latest figure is 67% according to Horace Dediu.

Re: Amazon Has High Hopes for Its iPad Competitor

#46
post #44

I hope that doesn't mean they're abandoning development on their e-ink devices, or relegating them to third-class citizens. The only reason I'd buy a reading device is if staring at it for 2+ hours didn't give me a headache like a backlit tablet does. (And an all-purpose tablet like an iPad still doesn't interest me enough to buy anyway.)

Have you tried the various OLED (AMOLED, SAMOLED etc.) devices? When showing black they are effectively off, so white (or green or gray) on black text is relatively soothing.

My main reading use case is in bed at night. I have a little booklight for reading actual paper books, but I think I'm waiting for an AMOLED 8" tablet for e-book reading. It works pretty darn well for my phone in low light conditions. (In fact the main competition for an 8" tablet would be one of those giant 5" phones with AMOLED).

Re: Amazon Has High Hopes for Its iPad Competitor

#47
> [The iPad has] set off a revolution in progress about how entertainment and other media are consumed.

Is this really true ? I know I'm a bit provincial but I don't know anyone with an iPad and have only ever seen anyone with one TV. I'm not even sure my friend who works in the Apple store has one at home (he's never mentioned it and he's the kind who would).

EDIT I got my reply from asking him. It's revolutionised how entertainment and other media are consumed in his house.

me: how do you like it ?

he: Very much. Lou uses it all the time ... She hasn't used a pc since.

Re: Amazon Has High Hopes for Its iPad Competitor

#48
post #44

I hope that doesn't mean they're abandoning development on their e-ink devices, or relegating them to third-class citizens. The only reason I'd buy a reading device is if staring at it for 2+ hours didn't give me a headache like a backlit tablet does. (And an all-purpose tablet like an iPad still doesn't interest me enough to buy anyway.)

The iPad won't give you a headache. That might be a good enough reason to buy it.

Re: Amazon Has High Hopes for Its iPad Competitor

#49
post #42
post #37

Earlier quoted context omitted.

The problem with going up against Google is that they offer a superior product to end-users for free . I have no doubt that the iPad will remain a superior product to the Amazon Tablet. However, I also have no doubt it will keep costing more than the Amazon tablet. Consumers care about that extra ~$250. Like Google, the iPad is currently the low-end and the high-end of the market, but unlike Google, it's vulnerable o…

Notice that in my OP, I said "take any significant chunk of _profit_". I'm not as concerned about marketshare as I am about profit. Yes, Android devices are outselling iPhones, but they are generating considerably less profit. I don't know the latest figures, but iPhones relatively small market share accounted for over 50% of profits last time I saw. Amazon might sell a lot of cheap tablets, but that won't hurt Apple…

Apple don't have a relatively small market share in smartphones. Asymco likes to quote the mobile phone, not the smartphone numbers to make this stat sound more impressive than it is.

If you do that then it's something like 4% of unit sales share giving 50% of profit. If you exclude people selling millions of throwaway cellphones for pennies and only include HTC, RIM and the smartphone parts of Nokia, Samsung etc. then the profit they make (while still better than the industry average, thanks to RIM and Nokia pulling it down) is much more closely tied to market share and therefore seems much more under threat as Android advances on that front.

Re: Amazon Has High Hopes for Its iPad Competitor

#50
post #44

I hope that doesn't mean they're abandoning development on their e-ink devices, or relegating them to third-class citizens. The only reason I'd buy a reading device is if staring at it for 2+ hours didn't give me a headache like a backlit tablet does. (And an all-purpose tablet like an iPad still doesn't interest me enough to buy anyway.)

Have you tried the various OLED (AMOLED, SAMOLED etc.) devices? When showing black they are effectively off, so white (or green or gray) on black text is relatively soothing. My main reading use case is in bed at night. I have a little booklight for reading actual paper books, but I think I'm waiting for an AMOLED 8" tablet for e-book reading. It works pretty darn well for my phone in low light conditions. (In fact t…

Sometimes, OLED screens are even worse than your average LCD. For example, the Galaxy S has beautiful colors and the bright of a thousand suns, but it's awful for simple white-on-black text. The glyphs are very irregular and have jaggies. I think it's because of the PenTile arrangement of the pixels: http://pentileblog.com/wp-content/uploads/2011/05/pentile-sh...
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