Amazon spares no effort to attack the Smartphone market

According to foreign media reports, in the past 5 years, Apple has earn huge profits in the Smartphone and Tablet market, and in stark contrast with Apple, other manufacturers either struggling or being eliminated. But this is not conducive to market competition, is not a good thing for consumers. Good news is now that the situation has changed, in the Tablet market, Google and Amazon respectively, with their Nexus 7 HD and Kindle Fire began eating away at the original profits that belongs to the iPad's huge profits; and in the Smartphone market, in addition to Samsung and Android camp, Amazon gets ready to get down

Best commercial markets should be this case that the industry leader own larger gains, while the other competitors at the low end price attract its groups in the area, and is actively developing its own technology, bridging the gap with industry leader. Only such reasonable competition to promote the healthy development of the industry, nor does it have a monopoly, are less likely to let industry leader in price as high as Apple's monopoly profits. Consumers can also choose according to their economic level of different grades of electronic products.

But now Apple Smartphone especially after 5 years of development in the Tablet industry did little things should appear: established a near-monopoly of huge industry profits.

Apple completed these achievements in the following ways:

First of all, from product quality and functionality, Apple maintain industry's great leader to other opponents

Second, around its device to create a "platform" eco-system, and then it develops a network effect, which is difficult with your hardware manufacturer.

At the same time, Apple's manufacturing process is very efficient, that makes the company both suppliers of high-end products, is also a manufacturer of low-cost products. In this way, Apple becomes the world's most profitable and the enterprises with the highest market value.

However, there are other companies pose a challenge to Apple's governing authority. It also increases the likelihood of Apple's enormous profit margins will decline.

In smartphone area, Apple's biggest competitor comes from Samsung. Now Samsung has been developed to catch up with Apple's iPhone product--Galaxy s 3. And Galaxy S3 in early September, sold more than 20 million units, Shin, a head of Samsung IT and mobile business unit said in a media interview Jong-kyun, Galaxy S3 smartphone sales will exceed 30 million units this year. However sales of Apple's recently released for iPhone5 is also bullish, has just launched a cycle break records in sales. But Samsung and Apple are racing ahead of the competition in every product, so consumers have a real choice. Some consumers will choose Samsung or other Android makers, which would further erode Apple's profit growth.

In Tablet PC industry, before Apple also has its own rival, but far from being able to truly be able to pose a threat to its own brand. But now Apple has encountered two companies that have different business models with Apple -Amazon and Google.

Both Amazon and Google, and they didn't need to make money through the sale of hardware, since other ways they can get revenue: Google search, Amazon on content and e-commerce. If the two companies can produce Apple products and competing products (not better, just with competitive), they were the advent of Apple's selling their own products. We already saw this in the latest of several product launches.

Google Mini Tablet PC--Nexus 7 has been on sale, priced at $ 199. The version of Kindle Fire HD 7 inch sells for $ 199, and 8.9-inch version of the Kindle Fire HD sells for $ 299, $ 100 is cheaper than the iPad 2. Both Amazon and Google have for sales pressure on iPad. For most Tablet users, compared to $ 399 iPad, $ 199 Kindle Fire HD or Nexus is a more attractive option. As an example, in a family, children may fall, missing, or otherwise damage the Tablet, compared to $ 399, the $ 199 is cheaper.

Initial talk outside Apple mini iPad and iPhone5 will release together, but it turns out, Apple not ready for the iPad mini now, particularly in terms of pricing. If it is priced at 299 dollars, sales may not be very good (only $ 100 cheaper than full-size iPad), but also face competition from Kindle Fire HD for $ 199 and the Nexus. But if the Apple iPad Mini in order to maintain the existing market share price drop to less than $ 299, Apple on this product, it is difficult to get too much profit than before.

Consumers will have a variety of attractive options in the future in the tablet computer market, but these models are lower than the price of the Apple iPad. Compared to the two years ago, there were significant changes in the Tablet market. Apple's dominance would be subjected to unprecedented challenges.

Apple iPhone may be the world's most profitable product, profit margin reached 40%, it will bring at least 30 billion dollars in revenue this year for Apple. What is more, Apple also launch all kinds of iPhone accessoires to make money, such as cute iphone 4 cases , leather iphone 4 cases, cool iphone 4 cases, bling iphone 4 cases, unique iphone 4 cases and so on. However, Apple's profits are not safe. In fact, in the history of business, what kind of profit is not always safe. Especially in the highly competitive technology industry, once brilliant moment of BlackBerry, Palm, and Nokia are a good example.

Samsung's rise has made consumers have real choices in the high-end smartphone market, while Google's acquisition of Motorola Mobile you will eventually provide more choice for consumers. Erosion of this will make other companies ought to flow into Apple's profits.

Taking into account the importance of traditional phone services in intelligent machines decline, Amazon is likely to be launched in the near future a brand of high-end smartphones, which are much cheaper than the current options and prices. Although Amazon has not released a Smartphone, but industry reports that the company is developing.

View of the Amazon on the Tablet's price policy, as Amazon CEO Jeff Bezos said, Amazon will not care about hardware, but would prefer to benefit from the service. So Amazon's mobile phone may by virtue of their price advantage shake up Apple and Samsung now.

You may interested on : cheap iphone 5 cases