Originally Posted by drewys808
Maybe, maybe not. I do agree that Amazon has a stronger ecosystem than Samsung which makes Amazon a sort of a competitor for Apple. However, Apple and Amazon are still very different companies and Apple may realize that there is room for both, a content company (Amazon - books/products/sales medium/music/movies) and a hardware company (Apple). Interestingly and quite ironically, I think that Amazon is more a competitor of Samsung.
Your analysis is counter to mine.
Apple and Amazon are much closer than Samsung in terms of business model. Different companies, but playing the same end game. and I think Apple sees quite plainly there isn't room for Apple as an ecosystem in Amazon's model. Amazon quite simply want's all sales receipts to come through them.
And I think in the end, you're looking at 2 different approaches coming from two different markets to the same end
- Amazon almost gives away good HW to get people to align with their GREAT consumables marketplace
- started with hard goods, now is driving to digital content, and same day deliveries
- Apple sells GREAT HW to get people to align with their good consumables marketplace.
- started with digital content, now driving to be Point of Sale for physical purchases.
In the end, both want the same thing... if you use technology to buy something, they want their 3-30% of the transaction. Apple makes more on the initial transaction... Amazon makes it up on volumen.
Also in the end, phones and tablets become commodities. The margins will drop from 30% to <10%, where Amazon is now. When that day comes, profits will be on consumer retention and satisfaction, or on mass sales. (Nordstrom vs Walmart).
Samsung... wants to sell you their stuff. They are more like MS (well the old MS), and classics like Sony, Mitsubishi etc... where Samsung doesn't see the end consumer their customer, but retail chains, carriers, device manufacturers instead.
Amazon and Apple feel they must disintermediate these middle men for the good of the consumer.