Quote:
Originally Posted by kindlekitten
partially due to the ipad's color screen. this is kind of disturbing. not because I have stock in Amazon, I try to have stock in the intelligence of people that influence our financial trends. once again this appears to be a blatant case of someone not having a clue as to the difference between the ipad and what it does and the Kindle and what it does.
kinda' scary when you think about how many other completely uninformed similar decisions are out there!
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Personally I take analysis comments with a grain of salt, however they are usually great indicators of when to take the opposite position.
The analysis does not understand the business model. While it is correct that Amazon will be losing $70 per unit, which is huge, amazons real business comes from the sales of books and not Kindles. The reason to push the kindles is that they eventually push book sales.
The price drop will actually result in a short term sales loss for Amazon since that is effective immediately.
However there will be an increase in the purchasing of Kindles. So while the price drop does influence Amazon immediate sales figure, it will result in more book sales where that is their true profit.
Also Amazon continues to broaden it's Kindle apps and now has a Kindle apps for every major OS out there. Excluding Win Mobile 7 and WebOS.
I think the iBook threat is a valid point and so is the Google Bookstore. However the Amazon store still has a better selection and since iPad/iPhone/iTouch users can buy books from Amazon I think the initial sales of the iBookstore will start to reduce as folks start to realize the Amazon store is a better choice than the iBookstore.
Personally I think the bigger threat will be the google store, while the iBook store does have a large pool of devices , it is limited to Apple products. The google store will be accessible to more devices and will have a competitive pricing. But since the store does not exist there is no need to worry about it as of yet.
Anyhow that is my $0.02
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