Amazon might be thinking about a different business model for its coming Android tablet. It basically is the inverse of the Apple model. Where Apple subsidizes content to sell hardware, Amazon might subsidize the device to sell content. To make the tablet’s price really attractive to users, Amazon may actually sell it for as much as 20 to 25 percent below cost.
The tablet would be a loss leader to drive sales of products on the Android Appstore, UnBox movie service, and music service, not to mention books and magazine content.
Also, taking a cue from retail marketing of smart phones, Amazon might use a contract of some type, perhaps a two-year amortized program that would cover any lost physical cost of the tablet.
No comments:
Post a Comment