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The Real Question Facing Amazon

19 February 2010 5,662 views No Comment

Well this has been discussed in a lot, but has not been worded right – so we thought we will give it a shot. The real question facing Amazon:

Sell More Kindles Or Sell More eBooks

The funny thing is, pre-iPad, nobody would have thought selling kindles and selling books are mutually exclusive.

Before you shoot us – here is our logic.

1. The only way Amazon can sell more Kindles is by selling eBooks at attractive prices. Or, they need to hire Steve Jobs and improve the Kindle. The problem is, Amazon always thought of selling the “Kindle Ecosystem” – little did they realize that they were actually dealing with the “eBook Ecosystem” – the publishers were just waiting for ONE other genuine choice to sell eBooks. Steve Jobs gave it to them. With No Strings Attached. So in this scenario, if Amazon insists on the price, publishers will pull out. We have seen one such episode last month.

2. If Amazon gives the flexibility to the publisher to price eBooks, ppl will buy the eBooks from the iBookstore, since, you know, you can also browse with the iPad. and listen to music. and watch video. In this scenario, ppl will start giving away their Kindles, and move on to Steve’s new device.

Q.E.D.

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