Apple Tablet is Amazon Kindle Killer

With the sales estimates in place and possibly a modified iPhone OS for the upcoming Apple tablet in the pipeline, the company that faces the most danger from Apple’s rumored late January announcement is Amazon and its Kindle ebook reader. Sources report Apple is heavily working to please print publishers to come on board with a higher revenue share for their digital titles. Unlike Amazon that charges publishers up to 70% of the revenue from their content, Apple will continue to take 30% of the revenue just like it does with existing App Store apps and offer majority of the revenue back to content creators that are in dire need to make every penny count.

We wouldn’t be surprised at this at all considering Apple’s historical deal making prowess. Apple has always struck favorable deals with content providers to move more devices over the long-term. It has never been Apple’s intention to generate significant revenue from iTunes or the App Store. It’s all about giving the most amount of quality content to users so they keep coming back for more Apple products. With Amazon enjoying its significant lead in the market thus far, it’s going to face a lot of challenges in the coming months.

Some people are even calling the tablet the Kindle Killer because of its emphasis on ebooks.

Tagged as: , , , , , ,

Other related articles:

  • Yes, with Amazon enjoying its significant lead in the market thus far, Apple is going to face a lot of challenges in the coming months. However, as you mentioned, let us not underestimate Apple's ability to strike favorable deals with content providers to move more devices over the long-term.

    Amazon will have to watch out and be ready.
blog comments powered by Disqus