Why Kindle Fire defeat Ipad
Since Apple launched the ipad, many vendors have also launched their tablet computers, such as Samsung, HP, Amazon and so on some well-known businesses. This most pays attention by Amazon Kindle Fire. After Apple CEO Steve Jobs announced his resignation, the challenger put a fire: Amazon tablet computer Kindle Fire unveiled its mysterious yashmak at the end of last month: it sells at low-price $ 199 (less than 1300 yuan) to the mass market.
How much will the Kindle Fire hurt the iPad “big brother” status?
If from the point of view of the composition of income, the two companies completely unlike the traditional sense of the competition: one is a retailer, the other one is hardware business. The previous season’s money newspaper showed that the Amazon from the media content accounted for nearly 40% in the total sales revenue, (if you count the income of merchandise products, it will have a higher proportion of retail) .However, more than 80 percent of sales revenue of Apple came from iPhone, iPad and Mac hardware.
It is very hard to enter the highly competitive tablet computer market. Although this market has been crowded, except for Apple, many other new entrants are still to fight for a foothold. Motorola, Samsung and RIM and other companies have launched their own brand of the tablet computers, but no one can shake Apple’s leading position. No wonder their tablet computers look similar to the iPad and the price is the same as the iPad, but they have not kept pace in the content and application procedures. Though they can support flash, the ipad only can support mov file and mp4, if you want to play other videos on the ipad, the best way is using a mac dvd to ipad converter, what is worse, such as how to convert dvd to ipad this simple operation can not be completed. People’s enthusiasm hasn’t been dampened down a bit for the ipad.
Why Amazon dare to sell the tablet computer at low price? Because it has the advantage that other Tablet PC manufacturers do not have: it can not rely on hardware to make money, but from the start it can sell other product tie-ins to the user.Relying on e-commerce retail business is to supplement the hardware losses, and then will bring big profits for the company.
One is to drive sales by its hardware-based content (Amazon), the other one is to use content to attract consumers to buy hardware (Apple). Two business models, two implementation strategies, they meet each other at a traffic crossing, which one will be the first to win the big one?
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