Amazon low cost tablet

  • Posted: 27 July 2011 07:45 AM

    Could Amazon coming tablet be a dangerous competitor for iPad.

    http://www.appleinsider.com/articles/11/07/27/amazon_said_to_be_lining_up_taiwanese_component_suppliers_for_q3_tablet_launch.html

    the low cost Kindle seems to be a real success. An Amazon tablet @$300 could prove very attractive with the Amazon ecosystem and the general use possibilities.

    Should Apple consider a lower cost alternative i.e. a $350 iPad 2 when launching an iPad 3

         
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    Posted: 27 July 2011 08:29 AM #1

    Hamourabi - 27 July 2011 10:45 AM

    Could Amazon coming tablet be a dangerous competitor for iPad.

    http://www.appleinsider.com/articles/11/07/27/amazon_said_to_be_lining_up_taiwanese_component_suppliers_for_q3_tablet_launch.html

    the low cost Kindle seems to be a real success. An Amazon tablet @$300 could prove very attractive with the Amazon ecosystem and the general use possibilities.

    Should Apple consider a lower cost alternative i.e. a $350 iPad 2 when launching an iPad 3

    I’m going to disagree on this one.  Even if Apple does not release a lower-priced tablet, it can still compete based on features.  I’d rather spend $350 on a used Gen1 iPad, that can still run all the iPad apps, than spend $300 on an Amazon tablet that probably has exclusive access to Amazon’s digital music and book store… but little else.  There’s Android apps out there, but those are not exclusive.  Also, I’m guessing (because apparently it’s being outsourced), it will weigh significantly more than the iPad, have less battery life, and the screen will probably be of inferior quality.  Finally, if they sell it for $300, they’re going to have a hard time making a profit on it.  “Yes, we’re losing money on each one, but we’ll make up for it in volume!” is not a good business strategy.

    The Kindle is a special case, because of the e-Ink screen, incredible battery life, and very low price.  Even though it only does one thing, it is extremely good at it, for a very reasonable price (I’m probably getting one, btw).  Apple would have to come out with a dedicated eBook reader to compete with that, and I’m pretty sure they’re not interested.

         
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    Posted: 27 July 2011 10:22 AM #2

    AMAZON .... the “Mystery Meat” company.

    BEST SELLER! KINDLE record sales! They cry and pronounce. YET NEVER once, have they actually released ACTUAL NUMBERS OF UNITS SOLD, nor the $$$ produced by the KINDLE line, have they?

    {Disclosure, I have been an AMZN owner off and on for the past 6 years}

    They “beat” by a few pennies, yes PENNIES and hope to run on a 4% margin, and Wall Street rewards with a P/E of 90+

    Apple, is downright OPEN about sales compared with AMZN, is flirting with a 41% margin, and isn’t facing the Sword of Damocles of a national sales tax applied to what is now Amazons biggest advantage, a “built in discount” of 5-10% over local brick and mortar retailers who must, and do, collect those onerous local and state sales taxes.

    So, PLEASE someone, explain to me, why the UTILITY company called AMAZON, trades at 5X the P/E ratio of a tech disruptor company called Apple?

    By the way, AMZNS new “tablet” will just be one more ME TOO tablet, with one major advantage…it will be like a new TV turned to ONE CHANNEL, the QVC shopping channel, only this one will be http://www.Amazon.com.

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    Posted: 27 July 2011 10:50 AM #3

    It wouldn’t surprise me if there are more iOS devices using the kindle book store then Kindles.  Amazon like Goggle have been riding Apple’s devices and that segment is probably much more profitable then their own foray into hardware, but they realize that at any moment Apple could create a competing offering and lure all their customers away from the Amazon or Google system.

         
  • Posted: 27 July 2011 08:04 PM #4

    Hamourabi - 27 July 2011 10:45 AM

    Could Amazon coming tablet be a dangerous competitor for iPad.

    http://www.appleinsider.com/articles/11/07/27/amazon_said_to_be_lining_up_taiwanese_component_suppliers_for_q3_tablet_launch.html

    the low cost Kindle seems to be a real success. An Amazon tablet @$300 could prove very attractive with the Amazon ecosystem and the general use possibilities.

    Should Apple consider a lower cost alternative i.e. a $350 iPad 2 when launching an iPad 3

    No. We really don’t know that any Kindle is as successful as the iPad, Amazon ain’t saying which leads me to believe they aren’t.

    Further, Apple can’t produce iPads fast enough to satisfy current demand. You don’t lower prices when demand exceeds supply.

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    Posted: 27 July 2011 08:46 PM #5

    i actually think Amazon could cut out a nice niche of the tablet market for itself, but it would devastate the potential Android based competitors more than the iPad.

    The big advantage amazon has is that they can operate a Razor&blades; model, selling the tablets at cost, just so that people buy apps/movies/books/music from the built in exclusive amzaon store. Its a completely different model that no-one else (except Apple) can pull off. Amazon lack physical distribution points of sale, especially globally, but this can be overcome slowly.

    In a couple of years I can see the following marketshare split in developed markets (OECD countries):

    Apple: 60-70%
    Amazon: 10%
    All other android manufacturers: 10-15%
    Windows/WebOS/Rimm/others: 10-15%

    And in deveolping markets generic low cost android/windows tablets would likely make up more than 50% with apple taking the rest. How much would depend on how apple will tackle the develing economies for its premium priced product lines (I guess we’ll find out soon with how they tackle china with the iphone)

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    Posted: 27 July 2011 09:40 PM #6

    In the middle ground between Apple’s disruptive but under respected behemoth and Amazon’s purported margin-poor media darling in the Barnes & Noble (BKS) nook. If you’re a serious investor in the post-PC gadget space you owe it to yourself to pick up a $250 nook color. Especially if you’ve justified a Kindle “just for research” in addition to your iPad. You can always gift it to a neighbor or somebody in the family.

    I second TT’s incredulity about margins, PE’s and the like.  Doesn’t make sense and I’ll continue to ponder why with the rest of you.  Mjuarez has a nice take on the price points. $350 is too much - just go with a dated iPad. $150 is not possible without stripping features. I especially appreciate the Sword of Damocles reference. Unlike Amazon but LIKE Apple, B&N has the brick&mortar; store fronts and has been aggressively connecting the e-book/device demographic back to their lifestyle brand. Exclusive In-store content & discounts available to Nook owners only, a social networking & marketing component, feature upgrades to the devices delivered over the air. In this niche they are poised to claim a sizable portion of the traditional book buyers before they switch to AMZN or AAPL.

    (Disclosure: I hold a small position in AAPL, have held AMZN but not since 2007, never BKS but looking).

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    Posted: 27 July 2011 09:48 PM #7

    Search “Android tablet” on Amazon and you’ll see the many sub-$250 tablets that an Amazon tablet would be competing against. Apple does not need to modify iPad pricing.

         
  • Posted: 29 July 2011 01:31 PM #8

    It’s somewhere between [apples & oranges] and [apples & chainsaws].  The Kindle isn’t a media tablet.  It’s a unitasker, but a fantastic one: it displays ebook media on an e-ink screen, and in so doing, provides a better e-reading experience FOR NOW than any competitor.  Even the iPad.  And I say this as a fully invested Apple fan.

    First there were rumors of Amazon bringing out a “Kindle Touch.”  This would shore up the one big drawback of the Kindle, its user interface (a full keyboard on a device that tethers? really?).  One surmises it would keep the Kindle’s killer app, which is the e-ink screen.  Now the rumors have advanced to it being a full-on Android tablet, assumedly with normal tablet touchscreen.  Well, those devices already exist, and they suck.  It would make no sense for Amazon to push such a product.  I concede that Amazon themselves may not realize this.

    If Kindle moves away from the niche where it delivers virtually its entire value-add, I guarantee it will fail.

         
  • Posted: 29 July 2011 01:55 PM #9

    If you want a “Kindle Touch” go to kobo.com and look at their device. It’s very much like a Kindle (e-ink, monochrome etc) but with touch screen rather than Kindle’s so-called keyboard (yuk).

         
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    Posted: 29 July 2011 03:07 PM #10

    O Brave New World

    Miranda:
    O wonder!
    How many goodly creatures are there here!
    How beauteous mankind is! O brave new world
    That has such people in’t!

    Prospero:
    ‘Tis new to thee.

    and so it could be written . . . Steve Jobs has patience, is influenced by the science of Buddhism to think outside the conventional trap, and has sharp memories of injustice and what such does to creativity.

    I doubt that Amazon or any competitor for that matter, has a chance in the game Apple has plotted out so well. I believe Apple may be targeting a new course of attack, pricing that could scare the bejeezus out of all competitors. It has a chest of gold like no other in history and it is not going the traditional route of giving it up to stock holders, baubles and silly toys or crazy extravagant investments. These are uncharted grounds for such a war chest.

    Apple, owns the Slim markets with both the MBA and the iPad, but it may soon own a whole lot more than consumer sales in these two lines. . .

    1. The next generation of MBPs coming out seem to be inline for a shakeup so may be following the trail blazed by the MBA.

    2. Now that the Mac mini finally has its power unleashed, such a refresh, one fails to imagine, may be in store for the iMac which seems a little long in the tooth?

    3. Prices of all computer lines have shown steady steps down, could it be Apple has learned a good lesson from its pricing of the MBA and the iPad, comforted by the size of its purse.

    4. If a brighter iPad 2+ is at hand, could the 16GB iPad 2 become the entry pad with a headache making price for the facimilators?

    5. And could the iPad 2+ continue the original price structure with a remake that shoots it past the stratosphere?

    6. And would Apple have put off its new iPhone unless it had some crazy stir-the-soup-recipe, a real game changer that may give the copycats faltering chance of imitating?

    If Apple wants to take the copiers down, price that includes profit is the forgers? main weakness undermined further by shoddy quality, source problems, lack of an ecosystem, lack of differentiation all standing in the face of almost 80B comfort baubles, a war chest that Apple may have plans to use in sudden death show down.

    Maybe its time has come and Apple is taking the gloves off and able to pull the gallows? lever to put the beasts to pasture. M$ did it, though short on scruples. Apple has the coin to do it legally, fairly and honestly, at least in the realm of trade and commerce.

    This could be a Shakespearean play, a comedy with a happy ending; full of blood, guts, gore, trading on very little battle but brimming with lots of hostages disarmed.

    For we who live in the world of Apple, this song is not so new but it is still so sweet.

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  • Posted: 29 July 2011 03:25 PM #11

    mhikl - 29 July 2011 06:07 PM

    O Brave New World

    Miranda:
    O wonder!
    How many goodly creatures are there here!
    How beauteous mankind is! O brave new world
    That has such people in’t!

    Prospero:
    ‘Tis new to thee.

    and so it could be written . . . Steve Jobs has patience, is influenced by the science of Buddhism to think outside the conventional trap, and has sharp memories of injustice and what such does to creativity.

    I doubt that Amazon or any competitor for that matter, has a chance in the game Apple has plotted out so well. I believe Apple may be targeting a new course of attack, pricing that could scare the bejeezus out of all competitors. It has a chest of gold like no other in history and it is not going the traditional route of giving it up to stock holders, baubles and silly toys or crazy extravagant investments. These are uncharted grounds for such a war chest.

    Apple, owns the Slim markets with both the MBA and the iPad, but it may soon own a whole lot more than consumer sales in these two lines. . .

    1. The next generation of MBPs coming out seem to be inline for a shakeup so may be following the trail blazed by the MBA.

    2. Now that the Mac mini finally has its power unleashed, such a refresh, one fails to imagine, may be in store for the iMac which seems a little long in the tooth?

    3. Prices of all computer lines have shown steady steps down, could it be Apple has learned a good lesson from its pricing of the MBA and the iPad, comforted by the size of its purse.

    4. If a brighter iPad 2+ is at hand, could the 16GB iPad 2 become the entry pad with a headache making price for the facimilators?

    5. And could the iPad 2+ continue the original price structure with a remake that shoots it past the stratosphere?

    6. And would Apple have put off its new iPhone unless it had some crazy stir-the-soup-recipe, a real game changer that may give the copycats faltering chance of imitating?

    If Apple wants to take the copiers down, price that includes profit is the forgers? main weakness undermined further by shoddy quality, source problems, lack of an ecosystem, lack of differentiation all standing in the face of almost 80B comfort baubles, a war chest that Apple may have plans to use in sudden death show down.

    Maybe its time has come and Apple is taking the gloves off and able to pull the gallows? lever to put the beasts to pasture. M$ did it, though short on scruples. Apple has the coin to do it legally, fairly and honestly, at least in the realm of trade and commerce.

    This could be a Shakespearean play, a comedy with a happy ending; full of blood, guts, gore, trading on very little battle but brimming with lots of hostages disarmed.

    For we who live in the world of Apple, this song is not so new but it is still so sweet.

    mhikl,

    It’s nice to see investing acumen combined with literary sensitivities.  Bravo!

    Alan