Investors are betting on Apple

L.J. Sellers · 06-09-2010, 01:25 PM

I read this quote on Shelf Awareness, from Motley Fool, a well known investment site.

"Apple will eat Amazon alive," claimed the Motley Fool in response to Apple CEO Steve Jobs's introduction of iPhone 4G and iBooks enhancements this week. "Apple has always owned the nerds and hipsters. Now it's making a strong push for the bookworms.... If you're Barnes & Noble or Sony, throwing in the digital towel doesn't seem like such a crazy idea at this point."

The Motley Fool also contended that "Apple is already talking like a market leader. It even championed the agency pricing model for publishers. The pages are turning quickly in this story, and Amazon is running out of papyrus."

Of course, the Fool has been wrong before.
L.J.

Teddman · 06-09-2010, 01:43 PM

Depends on whether they're talking about the e-reader or the e-bookstore.

iPad will certainly sell more devices than the Kindles, but then again, it's not a strictly classified as an e-reader.

But iBooks is not going to be selling more ebooks than the Kindle store any time soon. Perhaps ever.

HarryT · 06-09-2010, 02:40 PM

Quote:

Originally Posted by Teddman

But iBooks is not going to be selling more ebooks than the Kindle store any time soon. Perhaps ever.

They've made a pretty good start. Personally I find the "reading experience" on the iPad to be much, much nicer than that of the Kindle.

Teddman · 06-09-2010, 02:47 PM

Of the ebooks in your iBooks library, how many of those did you buy on iBooks?

HarryT · 06-09-2010, 02:50 PM

So far, none, but that would also be the answer if you asked me how many of the books on my Kindle came from Amazon. The only publisher I tend to buy eBooks from is Baen; the majority of my reading consists of out-of-copyright classics, for which I create my own eBooks.

Teddman · 06-09-2010, 03:05 PM

I've read a few of your ebook editions on my 505!

I think the versatility of the Kindle format's support on different devices is what's going to make this a very different e-tailing scenario from iTunes. Amazon was smart to get a version of the Kindle app on so many devices, including home PC's, Macs, iPhones and iPads (from launch). They blunted the effect of iBooks by having a competing store app ready from day one.

Worldwalker · 06-09-2010, 03:23 PM

Apple has absolutely not "owned the nerds". Hipsters, yes. Posers, yes. But nerds want computers -- and other devices -- they can fiddle with, which is the absolute antithesis of Apple's "we'll tell you what's good for you" attitude. Nerds are the people who hate platform lock-in, not embrace it.

/nerd
//geek
///bookworm

abookreader · 06-09-2010, 03:43 PM

I was thinking the same as Worldwalker. I've worked in tech for years. A true nerd would never be satisfied with an off the shelf/out of the box Mac.

"Uh dude - I built it myself!"

Most of them own iPhones, but from what I can tell only so they can have the pleasure of jailbreaking them and designing unauthorized apps.

Penforhire · 06-09-2010, 04:59 PM

Funny thing though, investors are currently paying more than twice Apple's PE (trailing 12 mo) for Amazon! Which is kind of silly when we're talking about a company with a half Apple's revenue and an even smaller fraction of Apple's profit margin.

I do expect Apple to eat Amazon's e-book lunch but I buy an awful lot of other things through Amazon so I expect them to survive. And it is not as if Amazon's Bezos was some sort of altruistic nice guy and the Kindle was all roses. No tears will be shed here.

Maggie Leung · 06-09-2010, 05:17 PM

Quote:

Originally Posted by Teddman

Of the ebooks in your iBooks library, how many of those did you buy on iBooks?

I've spent 99 cents on an iPad guide. Don't plan to buy others from iBooks because they're tethered to Apple only.

Avarwen · 06-09-2010, 05:35 PM

I disagree the ipod is not the only MP3 player and itunes isn't the only MP3 store. A lot of people won't be able to afford the ipad or the cost of the 3G connection. So other devices and stores will survive the ipad is for those who are willing to spend or can afford it. The rest of us will buy what we can afford.

A_J_Lath · 06-09-2010, 05:52 PM

^^I get most of my digital music from Amazon, because I never really got the hang of iTunes. I play it on an iPod though

Worldwalker · 06-09-2010, 07:37 PM

I buy my digital music from Amazon (and, of course, rip my CD collection), and play it on a Sansa. Or my desktop computers, my netbook, my car stereo, even tried on my 505 once (it's a lousy mp3 player). I've never had the urge to pay extra just to see a little apple logo on anything I own.

=X= · 06-09-2010, 08:34 PM

Never really cared for the Motley Fools advice. But if your are listening to investors, Buffet owns Amazon stock and Oliver at Perl Fisher Investments also believes that Amazon's Kindle will not be affected by iPad.

But investment is all about timing, Apple is overvalued, Amazon is about right. Personally I wouldn't invest in any at the moment.

Apple does not own the Nerds/geeks, in fact most steer clear of apple because it's too limiting. Right now you best go with Google/Android if you are looking for geeks who support a platform.

Also some of the recent moves Apple has done has had a large impact on the development community, and there has been and will be a backlash.

Once you lose trust from the development community it is hard to get it back. And a company that productively and randomly limits development tools because it doesn't like competitor X/Y/Z is going to lose trust real quick.

Blue Tyson · 06-09-2010, 11:38 PM

Quote:

Originally Posted by Worldwalker

Apple has absolutely not "owned the nerds". Hipsters, yes. Posers, yes. But nerds want computers -- and other devices -- they can fiddle with, which is the absolute antithesis of Apple's "we'll tell you what's good for you" attitude. Nerds are the people who hate platform lock-in, not embrace it.

/nerd
//geek
///bookworm

Absolutely.

06-09-2010, 01:25 PM	#1
L.J. Sellers Novelist Posts: 287 Karma: 387979 Join Date: May 2010 Location: Eugene, Oregon Device: Kindle	Investors are betting on Apple I read this quote on Shelf Awareness, from Motley Fool, a well known investment site. "Apple will eat Amazon alive," claimed the Motley Fool in response to Apple CEO Steve Jobs's introduction of iPhone 4G and iBooks enhancements this week. "Apple has always owned the nerds and hipsters. Now it's making a strong push for the bookworms.... If you're Barnes & Noble or Sony, throwing in the digital towel doesn't seem like such a crazy idea at this point." The Motley Fool also contended that "Apple is already talking like a market leader. It even championed the agency pricing model for publishers. The pages are turning quickly in this story, and Amazon is running out of papyrus." Of course, the Fool has been wrong before. L.J.

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06-09-2010, 01:43 PM	#2
Teddman Addict Posts: 242 Karma: 695 Join Date: Jun 2009 Device: Sony PRS-505	Depends on whether they're talking about the e-reader or the e-bookstore. iPad will certainly sell more devices than the Kindles, but then again, it's not a strictly classified as an e-reader. But iBooks is not going to be selling more ebooks than the Kindle store any time soon. Perhaps ever.

06-09-2010, 02:47 PM	#4
Teddman Addict Posts: 242 Karma: 695 Join Date: Jun 2009 Device: Sony PRS-505	Of the ebooks in your iBooks library, how many of those did you buy on iBooks?

06-09-2010, 02:50 PM	#5
HarryT eBook Enthusiast Posts: 85,560 Karma: 93980341 Join Date: Nov 2006 Location: UK Device: Kindle Oasis 2, iPad Pro 10.5", iPhone 6	So far, none, but that would also be the answer if you asked me how many of the books on my Kindle came from Amazon. The only publisher I tend to buy eBooks from is Baen; the majority of my reading consists of out-of-copyright classics, for which I create my own eBooks.

06-09-2010, 03:05 PM	#6
Teddman Addict Posts: 242 Karma: 695 Join Date: Jun 2009 Device: Sony PRS-505	I've read a few of your ebook editions on my 505! I think the versatility of the Kindle format's support on different devices is what's going to make this a very different e-tailing scenario from iTunes. Amazon was smart to get a version of the Kindle app on so many devices, including home PC's, Macs, iPhones and iPads (from launch). They blunted the effect of iBooks by having a competing store app ready from day one.

06-09-2010, 03:23 PM	#7
Worldwalker Curmudgeon Posts: 3,085 Karma: 722357 Join Date: Feb 2010 Device: PRS-505	Apple has absolutely not "owned the nerds". Hipsters, yes. Posers, yes. But nerds want computers -- and other devices -- they can fiddle with, which is the absolute antithesis of Apple's "we'll tell you what's good for you" attitude. Nerds are the people who hate platform lock-in, not embrace it. /nerd //geek ///bookworm

06-09-2010, 03:43 PM	#8
abookreader Wizard Posts: 1,516 Karma: 2567610 Join Date: Oct 2009 Device: Kindles - Keyboard, Fire, 2-US, iPhone, iPAD	I was thinking the same as Worldwalker. I've worked in tech for years. A true nerd would never be satisfied with an off the shelf/out of the box Mac. "Uh dude - I built it myself!" Most of them own iPhones, but from what I can tell only so they can have the pleasure of jailbreaking them and designing unauthorized apps.

06-09-2010, 04:59 PM	#9
Penforhire Wizard Posts: 2,230 Karma: 7145404 Join Date: Nov 2007 Location: Southern California Device: Kindle Voyage & iPhone 7+	Funny thing though, investors are currently paying more than twice Apple's PE (trailing 12 mo) for Amazon! Which is kind of silly when we're talking about a company with a half Apple's revenue and an even smaller fraction of Apple's profit margin. I do expect Apple to eat Amazon's e-book lunch but I buy an awful lot of other things through Amazon so I expect them to survive. And it is not as if Amazon's Bezos was some sort of altruistic nice guy and the Kindle was all roses. No tears will be shed here.

06-09-2010, 05:35 PM	#11
Avarwen Connoisseur Posts: 87 Karma: 12170 Join Date: Oct 2009 Device: EZ_ Reader, Nook wifi, Kindle 3G	I disagree the ipod is not the only MP3 player and itunes isn't the only MP3 store. A lot of people won't be able to afford the ipad or the cost of the 3G connection. So other devices and stores will survive the ipad is for those who are willing to spend or can afford it. The rest of us will buy what we can afford.

06-09-2010, 05:52 PM	#12
A_J_Lath Zealot Posts: 134 Karma: 200000 Join Date: Jun 2010 Location: UK Device: Computer	^^I get most of my digital music from Amazon, because I never really got the hang of iTunes. I play it on an iPod though

06-09-2010, 07:37 PM	#13
Worldwalker Curmudgeon Posts: 3,085 Karma: 722357 Join Date: Feb 2010 Device: PRS-505	I buy my digital music from Amazon (and, of course, rip my CD collection), and play it on a Sansa. Or my desktop computers, my netbook, my car stereo, even tried on my 505 once (it's a lousy mp3 player). I've never had the urge to pay extra just to see a little apple logo on anything I own.

06-09-2010, 08:34 PM	#14
=X= Wizard Posts: 3,671 Karma: 12205348 Join Date: Mar 2008 Device: Galaxy S, Nook w/CM7	Never really cared for the Motley Fools advice. But if your are listening to investors, Buffet owns Amazon stock and Oliver at Perl Fisher Investments also believes that Amazon's Kindle will not be affected by iPad. But investment is all about timing, Apple is overvalued, Amazon is about right. Personally I wouldn't invest in any at the moment. Apple does not own the Nerds/geeks, in fact most steer clear of apple because it's too limiting. Right now you best go with Google/Android if you are looking for geeks who support a platform. Also some of the recent moves Apple has done has had a large impact on the development community, and there has been and will be a backlash. Once you lose trust from the development community it is hard to get it back. And a company that productively and randomly limits development tools because it doesn't like competitor X/Y/Z is going to lose trust real quick.