Hwong, I don't see any conflicts with anti-trust laws here. Amazon is selling the Kindle as part of a package in which it expects to gain greater sales eventually with customers. In the US, telecom service providers subsidize phones to the tune of hundreds of dollars to get subscribers to sign contracts of up to two years. If they break the contract, they have to pay about $200 back to the service provider. This amount is lower than the regular price of a smartphone in many cases.
Amazon's strategy is similar. It sells the Kindle below cost to get customers to buy other goods, apps and services on its sight. They are all doing this. Who's going to file anti-trust complaint?
@hwong, i think that might be the next level of war in technology - price. Patent infringement legal battles seem insufficient enough in competing for market shares. HP previously had its tablet sold at very low price recently. Well, i think that shouldn't cause brouhaha amongst the regulators.
t.alex i agree with you. I wouldn't know if other smaller companies would able to compete at that level factoring in Amazon's reputation in the world market. Those ones manufacturing tablets in emerging and developing markets of Asia and Africa, would bare the much of the price aheadache should Amazon Kindle Fire available there. I think.
Hwong: I'm not sure if that is price-fixing rather than anti-trust. Competitors can lower their prices any time they want to compete. But it is an interesting question and I'll see if I can find some clarity.
Correct me if I am wrong, my impression is anti-trust law prohibits companies from selling products below manufacturing cost to maintain fair competition in the market. How can Amazon do that?
One benefit that the true e-book readers have is the easy-to-read "electronic paper" screen, that also has low power consumption. These are much easier to use for long periods of time without straining your eyes. The market will tell if there remains enough of a demand for e-book readers like this to stay around.
You’re welcome Kunmi. But you were right in terms of the older models of the Kindle and Nook e-reader devices.It was just a matter of time that the stand-alone e-reader devices would go away in exchange for more full featured tablet devices.
Hi Kumni, the new Amazon Kindle Fire and the new Barnes and Noble Nook tablets are indeed Android tablets.They will both be running modified versions of the Android OS.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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