In a recent NY Times article, the upcoming battle between Apple and Amazon was discussed. Apple has been dominating the tablet market with the Ipad, and while they have seen competition from other brands, Apple has been able to dominate the market with their business strategy: selling media in order to sell their products (like MP3s for the Ipod.)
Amazon on the other hand has an almost backwards approach to Apple’s strategy: sell products in order to sell media. Apple has yet to face an opponent with such a differing strategy, and obviously have no comment as to how they plan on combating their new opponent.
Just as secretive as Apple is being about their sales strategy, Amazon is being secretive about product specifications.
While company executives at Apple may be sweating worrying over how much of a dent Amazon will make in their profits, and Amazon executives are worrying about how well their tablet will stand up against the Ipad, consumers should be rejoicing.
It is clear from looking at how Amazon marketed the Kindle, dropping the price by nearly $300 in order to sell more units, Amazon is not afraid to sell their products at a loss in order to drive more business to their site. Consumers would more than likely see Amazon taking price cuts with their tablets both to drive sales and compete against Apple. This would more than likely galvanize Apple to consider dropping prices for their $500 tablet in order to stay competitive.
Cheaper tablets = win for consumers.
Amazon is expected to reveal more information about their upcoming tablet at a press conference this Wednesday.