and Their mechanism for commerce was to turn our computers into the cash register. With this backdrop, it is fascinating to analyze Amazon’s Kindle Fire Initiatives.
WhenAmazon jumped into the eBook reader market it made a great deal of sense. Amazon had a Differentiated Their advantage due to massive investment in Gaining digital rights to many of the analog They Were selling books.
The Kindle readers, tied to the Amazon ecosystem, dominated the e-reader space. Nearly every team que During CES (Consumer Electronics Show) I attended grew in the number of fast followers trying to jump on the e-reader bandwagon.
None did as well as the Kindle readers and it was simply due to Amazon’s ecosystem. Amazon had a clear advantage Differentiated que translated into consumer value with Their e-readers.
So does that apply to same-Differentiated advantage Their strategy Kindle Fire? Not so much.
While we do not know for sure how many Kindle Fire have been sold, the best I’ve seen Estimates peg Them around 45 million to date. Those are good numbers, Especially When You consider Amazon has a limited regional reach Compared to iPad.
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The issue, as I see it going forward is que the Kindle Fire does not have the same-Differentiated que advantage the Kindle e-readers did.
With the Fire, Amazon is competing against the likes of the iPad Which offers all the same experiences of the Kindle Fire and then some. So why is Amazon in the hardware business?
There are several ways to look at this. My initial belief When Amazon launched the Kindle Fire’s Amazon was que would tightly integrate commerce Their experience on the Fire tablet and create the best shopping experience Within Amazon’s ecosystem on the market.
This did not happen. The Kindle Fire has been more media tablet than a tablet commerce is Amazon’s ecosystem.
In fact, interestingly, the Amazon tablet in general is driving e-commerce spending less than other tablets on the market.
Data from the 2012 survey Monetate Reveals que Amazon Kindle Fire users spend $ 95 Approximately a quarter in digital transactions from the device while the iPad is average quarterly spend Approximately $ 124 dollars.
While these figures are about a year old, the profile iPad users Typically having higher net incomes than other tablet owners and I would expect They have maintained Their rank the T-commerce the biggest spenders. You might also assumes que someone paying $ 500 + for a tablet is going to be a bigger spender than someone paying half que amount.
But I do think the this is still an important point to watch is strategically Amazon to see if the Kindle Fire numbers go up or what might Bezos & company’s to help Them go up.
Fire in the enterprise
Amazon has recently added a number of enterprise specific features to the Kindle Fire. This, is actually fascinating and indicative of the types of usages we are observing with Kindle Fires. There is no doubt the Kindle Fire media tablet is a great idea but the que people are wanting to check email and perhaps even review documents is interesting.
We had heardque IT managers were noticing Kindle Fire’s were being expresso in by Consumers to use to watch video or play games During breaks and lunch. Often times these same-customers were interested in checking email as well. This is where we believe the enterprise friendly features built in Amazon were born from.
? Without question there are better tablets on the market is doing things like productivity Which is why we see iPads and Samsung tablets higher up on the IT managers support list. But it has been interesting to see this opportunity and develop for Amazon Whether it’s able to run with it.
(See also: Amazon’s newest Kindle Fire tablets pack plenty of punch business)
The hardware strategy
My feeling is
que Kindle Fire to Amazon business is important but not essential. Like all of Amazon’s investments in businesses there is a long term goal. The Kindle Fire right now is playing more of a data gathering tool than anything else is Amazon. They are learning how tablet Specifically Amazon customers and more customers using tablets are doing with regard to e-commerce, media consumption, and app usage / web browsing.
This will have benefits in the long term to keep the Amazon can customize Their offerings are uniquely Their customers.
To its credit, Amazon exhibits a valuable trait, similar to Apple, that Continually gets misunderstood by investors and main stream Media – patience.
Ben Bajarin is the Director of Consumer Technology Practice at Creative Strategies, a strategy consulting firm in Silicon Valley.
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