10 Reasons Why Amazon Should Worry About an Apple Tablet
News Analysis: The Amazon Kindle is enjoying strong sales as the leading e-reader on the market. But if Apple announces a tablet PC next week, it's likely that the device will feature an e-reader component. If so, it could wreak havoc on the Kindle's value proposition.Unlike so many e-readers that came before it, the Amazon Kindle captured consumer attention by combining a nice reading experience with a convenient distribution platform through the Kindle e-book store. In many ways, Amazon's strategy with the Kindle followed Apple's iPod strategy: build a device that people want and make it easy for them to get content onto that device. It worked. And today, the Kindle is the leader in the e-reader market.
1. It's about color
Amazon's Kindle doesn't support color. When reading a novel with no pictures, that might not be a problem. But consider the fact that universities and enterprises-two key sectors of the market-rely on color and it becomes blatantly clear that the Kindle is lacking. Apple's tablet won't suffer from that issue because the device will be able to display e-books in full color.
2. Web, apps and much more
The Kindle does one thing and it does it well: reading e-books. But Apple tablet could offer an e-reader, while throwing in access to iTunes, the ability to use apps, Web surfing, checking e-mail, and much more. Simply put, the Apple design could be a full-featured product. When it comes to value proposition to the consumer, that might mean more than anything the Kindle offers.
3. The e-books are easy to come by
Although Amazon's Kindle Store is a key reason for its success, it likely won't be hard for Apple to get e-books on its device. The iPhone already reads e-books from Kindle's Store, which means that service could be available on the Apple tablet. Allowing Apple's device to work with Kindle e-books would be a smart move for Amazon, since it still can generate revenue from the sale of e-books in its store. But what does it do to the Kindle? Chances are, Amazon's device will quickly turn into the also-ran.
4. It's Apple
Let's not forget which company Amazon is battling against. Apple isn't Sony or Barnes & Noble. Apple fully understands what it takes to make a tech gadget successful in an increasingly crowded and competitive marketplace. It also knows what the customers really want from a tablet device. Amazon's Kindle could be facing a tech juggernaut that leaves just scraps for the competition. It's a scary proposition.