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Originally Posted by bhartman36
I think the problem with that theory is that they're not losing sales to other devices. Again, they've got software (for music, storage, and books) on every device imaginable. They've even got their hooks into the iPad. They've got all kinds of platform-agnostic software. I don't see what they need their own device for. They're already accessible on everyone else's.
And if you were releasing a tablet, would you really want everyone to be able to access your app store, regardless of whether or not they own your tablet? The beauty of the Android Market is that it basically doesn't care what hardware you run it on, as long as you're running the right version of Android. And you can even get the Market working on devices that Google didn't intend it to run on (like the Craig tablet I bought). If Amazon was seriously considering releasing their own device, they'd put the Android Market on it. They wouldn't bother with their own, and then release it for everyone to use.
It's cheaper and easier (and leaves them less vulnerable) if they let people buy Kindle books on someone else's tablet.
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How many i-people buy from iTunes, and how many do you think buy from Apple? Seriously? Amazon mp3 does have pretty decent iTunes integration...but still.
If they had their own wildly popular tablet, with perfect Amazon integration, you think that wouldn't work better than selling Kindle books and music to iTunes users?
It's the same reason that most Apple users buy content from iTunes - far, far, far more than anywhere else - the gadgets are streamlined and designed to encourage them buying from iTunes. I'm sure Amazon would like a piece the same thing.
Just like B&N, they can make a tablet with a very thin profit margin, and make lots of money on content. Except even more than B&N because they have Kindle books, music, movies - far more content than B&N - and by preloading and actively encouraging Amazon customers to use Amazon services and buy Amazon content.
Since the minute they officially announced their own Android marketplace, it's been incredibly obvious a tablet gadget is forthcoming. It's just a matter of time.