Originally Posted by gprovida
Amazon is selling tablets to those who would not have bought an iPad [as noted by Tim Cook based on iPad sales data] that is bringing a new market segment to bear. Whether this will be a threat to Apple iPad is TBD, but to the Android tablet community its a disaster.
Amazon is selling its curated and exclusive environment [with more to come] and they make money NOT on the hardware, but rather on the services. This makes competing very difficult for hardware manufacturers.
So they must compete with Apple at the mid and high range [demonstrably hard to do and make money and/or volume] and at the low end with Amazon, who is selling hardware at a loss or break-even.
Therefore, I think Apple's view that Amazon is going to make the tablet Android market very hard for non-Apple vendors and oh by the way cut Google out of the ad business, just like Facebook is doing.
What happens when Facebook introduces a phone and tablet at near cost or even at a loss and makes money on ads and sales. Again Hardware OEMs and Google are in a tough place.
The disruption that Amazon is pioneering may in the long run effect Apple but they will be a major problem for current Android OEMs and Google in 2012. Facebook just compounds the problem for Google and Android.
Gotta love this if you're an Apple shareholder. On the low end, Android faces a deep-pocket competitor who is happy to sell their hardware at cost, and who has a compelling ecosystem related to their tablet. What would Android bring to the party in the sub-$300 market?
I'm not so sure if there's even going to be a mid-market. If budget is a top priority, you'll tend to go with the Fire. If it's not, and you're comfortable going above a few hundred, it's just not that much of a stretch to go to $500 for an iPad 3 (or possibly somewhat less for an iPad 2).
Now when Android tries to compete with iPad 3 at the high end, since their margins are nowhere near as good as Apples, at an equivalent price-point, they'll have to offer a cheaper device. That, combined with the fact that Apple has an outrageous lead on tablet-specific apps, makes for a very tough slog for Android.
I just don't see Android making it in a substantial way in tablets
And if Apple becomes to tablets what Microsoft has been in the desktop sphere, that will just enhance the iPhone and iMac and iCloud ecosystem that much more
Could possibly get ugly if Amazon decided they wanted to go toe-to-toe with Apple in the full-featured 10-inch tablet market. But my guess is that they'll see that as a non-winner. The wild card, I think, is how well iBooks Author does. If Amazon starts feeling like their book empire is under serious threat from Apple, they may have no choice but to fight back
Well, either way it's hard to see Android doing well here. Microsoft? That's a whole different story. I think their only hope--and it's a long-shot--is to take over in the enterprise market and hope this spills over into consumer. Good luck with that