The Apple iPad is now available at Amazon, the cradle of Kindle, an e-reader the iPad has blown out of the water. The iPad debuted at Target last week and Amazon is the first online retailer to sell the “Kindle Killer” other than Apple. Analysts say the deal is good for both Amazon and Apple, which has built what is believed to be an insurmountable lead in the market for tablet PCs.
Amazon uses Kindle Killer to boost e-book business
Amazon is carrying all six models of Apple’s iPad. Lauren Indvik at Mashable said that although it seems counter-intuitive for Amazon to carry a product dubbed the Kindle Killer, it makes good financial sense. Indvik writes that Amazon’s e-books strategy is based on selling e-books, not e-readers. The company has created a Kindle app for iPad that works better and has more inventory than Apple’s iBooks app. Each iPad sale is a new opportunity to expand Amazon’s e-book business.
Bad news for would-be iPad killers
Apple’s iPad has been selling like hotcakes at Apple’s retail stores, the online Apple Store and at Best Buy. Its availability at Amazon doesn’t look good for companies like RIM, which is seeking to market its PlayBook as an iPad Killer. Deutsche Bank’s Chris Whitmore told Fortune that the oncoming onslaught of competing products will “fall flat.” Whitmore said the iPad is up to 18 months ahead of the competition in content and two or more years ahead in media acquisition and integration. Apple leverages a growing advantage in scale to control the world’s tablet component supply chain and manufacturing capacity.
Why the iPad will prevail
The consumer confusion generated by a slew of iPad competitors competing on price will merely drive more people to the iPad, according to Darcy Travios at Forbes. It happened before with the iPod, which still has a market share of more than 70 percent. Travios writes that the secret to Apple’s success is a focus on the user experience while competitors focus on attributes like memory, storage, screen size, etc. People are willing to pay more for ease of use, simplicity and elegance. For Apple’s iPad, brand loyalty translates to market leadership.