Amazon tries to stay competitive with Apple, will need a new device

Steve Jobs in a chair with the iPad.The day Apple announced the iPad, Amazon was calling newspapers and publishers before Steve Jobs had even left the stage. As the New York Times’ Bits blog has it, Amazon wanted to hear what Apple had offered. Amazon had been trying for more than a month to sign deals with publishers that would give Amazon customers the best prices anywhere, either by matching or beating the prices given to other dealers.

Amazon tried to sweeten the deal by offering publishers bigger revenues than in the past. Unfortunately, Apple was willing to budge on a much larger issue: price. With Apple, publishers had a bit more flexibility than Amazon would give, which in turn gave publishers bargaining power over Amazon. See, Amazon will do just about anything to stay competitive with Apple.

In fairness to Amazon, it’s not like publishers want to upset that distribution channel. Amazon pretty much pioneered the ebook scene – it certainly made ebooks as popular as they were likely to become before some sort of wonder device came along – which leaves publishers keen to cater to the existing subscribers in Amazon’s marketplace until either the iPad gains enough ground or Amazon releases a new reader.

That last point is very important. If Amazon doesn’t release a new reader within the next year or so, it will pigeonhole itself into becoming solely a content provider, a position I wouldn’t think Bezos wants to be in considering he started the Kindle. Rarely would a company of Amazon’s scale introduce a middling product only to do away with it in a couple years.

Source: Bits

  

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