ENTRIES TAGGED "device disruption"
Kindle Fire vs iPad: “Good enough” will not disrupt
Horace Dediu addresses the Amazon-Apple threat level.
With its recent release of the new Kindle Fire HD tablets, some have argued that Amazon has declared war on Apple and its iPad. But how serious is the threat? Are the two companies even playing the same game? I reached out to analyst Horace Dediu, founder and author of Asymco, to get his take. Dediu will speak on all this and more at TOC Frankfurt on October 9, 2012. Our short interview follows.
How disruptive is the Kindle Fire to the low-end tablet market?
Horace Dediu:The problem I see with the Kindle is that the fuel to make it an increasingly better product that can become a general purpose computer that is hired to do most of what we hire computers to do is not there. I mean, that profitability to invest in new input methods, new ways of interacting and new platforms can’t be obtained from a retailer’s margin.
Also, there is a cycle time problem in that the company does not want to orphan its devices since they should “pay themselves off” as console systems do today. That means the company is not motivated to move its users to newer and “better” solutions that constantly improve. The assumption (implicit) in Kindle is that the product is “good enough” as it is and should be used for many years to come. That’s not a way to ensure improvements necessary to disrupt the computing world.
Lastly, the Amazon brand will have a difficult time reaching six billion consumers. Retail is a notoriously difficult business to expand internationally. Digital retail is not much easier than brick-and-mortar. You can see how slow expansion of different media has been for iTunes.