- Feb 5, 2006
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Seems like to me they would make huge inroads if they made something like Notion Ink Adam, but thinner and lighter, like the Kindle.
They have distinct advantages that other Android manufacturers don't:
- Great software team to customize the OS to their exact needs.
- Efficient, entrenched and consumer trusted online distribution network with as many credit card numbers as anyone. Kindle sales prove they can get their product out in huge numbers.
- Robust cloud computing infrastructure, they can sell cloud apps/storage.
- Kindle Brand. People will buy a Kindle for e-reader alone, get tablet functionality for essentially free.
- Ability to subsidize their hardware with app sales from own market, like Apple.
- Ability to subsidize their hardware with content (books, video, music, etc) sales, like Apple.
- Ability to subsidize their hardware with ads for stuff sold on Amazon. Instead of seeing ads from some random third party, you'll see ads that will let you one click order stuff from Amazon. They won't be taking some % of the ad revenue, but ALL of it. This is something even Apple doesn't have.
The cross-subsidy part would allow them to compete very favorably on pricing, at a level that will not be sustainable for most other manufacturers.
Pixel Qi display would differentiate them from the iPad, and give them ability to transition their traditional E-ink readers to Color E-ink/LCD tablets, basically they get to eat their cake and have it too. It also can give them very long battery life in E-ink reflective mode with no backlight, meaning they can make device thinner and lighter.
Since securing displays is becoming a supply bottleneck, it may make sense for them to buy Pixel Qi outright. Maybe buy Notion Ink while they are at it and use the Adam as a starting point. Notion Ink has a promising product, but they are in no position to compete with the big boys themselves.
Basically a tablet seems like it ties into Amazon's business perfectly both as a distribution device for content and an advertising platform for their goods. They also need this as a defensive move to stop more of their Kindle customers migrating to iPads. I would be surprised if they did not jump on the tablet bandwagon in the near future. The synergies are just too great to ignore.
They have distinct advantages that other Android manufacturers don't:
- Great software team to customize the OS to their exact needs.
- Efficient, entrenched and consumer trusted online distribution network with as many credit card numbers as anyone. Kindle sales prove they can get their product out in huge numbers.
- Robust cloud computing infrastructure, they can sell cloud apps/storage.
- Kindle Brand. People will buy a Kindle for e-reader alone, get tablet functionality for essentially free.
- Ability to subsidize their hardware with app sales from own market, like Apple.
- Ability to subsidize their hardware with content (books, video, music, etc) sales, like Apple.
- Ability to subsidize their hardware with ads for stuff sold on Amazon. Instead of seeing ads from some random third party, you'll see ads that will let you one click order stuff from Amazon. They won't be taking some % of the ad revenue, but ALL of it. This is something even Apple doesn't have.
The cross-subsidy part would allow them to compete very favorably on pricing, at a level that will not be sustainable for most other manufacturers.
Pixel Qi display would differentiate them from the iPad, and give them ability to transition their traditional E-ink readers to Color E-ink/LCD tablets, basically they get to eat their cake and have it too. It also can give them very long battery life in E-ink reflective mode with no backlight, meaning they can make device thinner and lighter.
Since securing displays is becoming a supply bottleneck, it may make sense for them to buy Pixel Qi outright. Maybe buy Notion Ink while they are at it and use the Adam as a starting point. Notion Ink has a promising product, but they are in no position to compete with the big boys themselves.
Basically a tablet seems like it ties into Amazon's business perfectly both as a distribution device for content and an advertising platform for their goods. They also need this as a defensive move to stop more of their Kindle customers migrating to iPads. I would be surprised if they did not jump on the tablet bandwagon in the near future. The synergies are just too great to ignore.
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