Monday, October 15, 2012

Something's odd here

In tablets we currently observe two business models:

The Apple model -  make money on the hardware, therefore lock users in,  and make sure that there's enough content available for iOS to do so

The Amazon model - get consumers to buy content and stuff from Amazon,  and make sure they have a device for this.

What is odd here,  is that the Apple model,  which depends on globally availability and distribution of a physical goods (the iPad) is more scalable than the distribution of purely electric or virtual goods (content) in the Amazon model, because Amazon is (still) limited by availability of said content in each country and has to negotiate it...


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