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« iPhone 4: First Impressions | Main | No Yak Shaving! »

June 28, 2010

Comments

I'm sorry, but I think you're comparing apples to oranges. Apple imho is winning market not because of the open source or free availability, but because of the fact that it servers a completely different and much broader market than the other e-readers.
This is so typical Apple : take only one of the features and they're not impressive (or even worse than competitors like e.g. the famous cut-n-paste on the iphone). But the package is balanced so well, that it makes up for the imperfection of the individual components.

I wonder whether it's 100% correct to say that "...unlike Amazon, Apple actually makes money with it's iPad".

I mean, sure, Amazon may not have as large a margin on the Kindle (or it may even cost them money for all I know), a major point to consider is that the Kindle provides a platform to do direct advertising for Amazon ebooks.

The products discussed here are neither low-end or new-market disruptors. It's possible to have an e-reader (with eInk) be disruptive (in both ways, which I find is by far the best hope for success), but noone appears to have done this so far.
Instead they all go for bloody head-on competition on extensive feature sets and now also lower prices. Fail, in my opinion.

Joro,
that's actually my point, but perhaps you have made it more clearly than I have. Apple has figured out the right feature set for a segment of the population and they are able to pursue this in a profitable fashion.

--Zack

Roland,
at these prices (and actually according to insiders, even at their earlier prices) Amazon and B&N were losing money on the hardware.

That may be part of their overall strategy, but it's a risky play. And its often the case companies get into trouble with such an approach. In this case, Amazon certainly has the cash to subsidize a money-losing hardware operation. It's not clear that B&N does. And for startups, it's almost never the case.

--Zack

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