The Key Difference Between Apple And Amazon Will Be Seen Next Quarter
Amazon is predicting record Kindle sales next quarter, just as Apple is predicting record iPhone and iPad sales next quarter. But there’s one key difference.
As a result of those record sales, Apple is predicting record revenue next quarter. Amazon, meanwhile, is warning that revenue will lag behind.
Apple is going to set records for their two highest revenue products. Amazon is going to set a record for a product that they may actually lose money selling.
Apple and Amazon play in the same general space now, but they play in that space in the exact opposite way of one another.
Apple’s model clearly works in this space. Amazon’s model? We’ll see. Remember, they’ll be competing with Apple on the price of much of their digital content as well.
The ability to upsell Amazon Prime may end up being the key here…
Jeff Bezos looooves low margin businesses and competing on price. In the physical world, they are able to use this scale to win. Not sure if it works the same with digital. It will be fun to see how things shake out.
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