Amazon Likely to Compete with Apple at the Cost of a Massive Loss

Apple being the king when it comes to tablets, however, is likely to be challenged by Amazon if the latter is ready to face a major loss.

Amazon vs AppleApple has already made it huge for their enterprise when it comes to tablets as their iPad is a gigantic gadget in the present times. However, if Amazon claims to give Apple a hard time, they must not forget that with their own tablet; they will only be able to threaten Apple if they are ready to face a huge loss!

Forrester Research analyst Sarah Rotman Epps said that if the online retailer doesn’t mind losing money and can release a tablet for less than US$300, it could sell as many as 5 million units during the December quarter.

Studies reveal that no matter how hard Amazon tries, their hardware and software specifications fall way behind than the Apps and iTunes available on the iPhone. Once faced a loss, Amazon will have to spend many years and invest millions out of the loss to regain any leftover place in the market. The reason for this major setback on Amazon’s part is basically their reduced and low margin that fall behind the margins of Apple!! I am sure the people of Amazon know what puddle they are planning to jump into!!

In a report covered by The Wall Street Journal, Ms. Epps acknowledged that “Apple’s lead in the tablet market looks invincible,” which is why she said Amazon is going to have to be willing to lose money to gain share.

Moreover, the price range that they will try to propose for their tablet will definitely be inadequate! Amazon must consider their stakes and the risk in this high profile claim! They can surely launch something less in magnitude than the tablets and leave behind the idea of competing with Apple!

However, it is for the officials at Amazon to decide as to what they need to manufacture and launch! My advice is that they must open their eyes before it’s too late!


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