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Amazon and Apple will have a high-profile war

Posted Jul 26 2012 8:19am

Beijing time on July 26, according to foreign media reports, the long war of accumulated between Amazon and Apple is heating up.

In fighting for the control of digital life for consumers in the fight against the two giants are more and more heated exchanges in the field of science and technology. Competition between Amazon and Apple are struggle between different from other technology companies, because these two companies have many similarities--from the tight control of their software to the corporate culture of secrecy, as well as the breadth of their consumer data.

This war the latest catalyst came from a message earlier this month, Amazon is testing its own brand of smartphone, this phone will be in direct competition with the Apple iPhone. The two companies have been in the Tablet, digital music, video, and other areas of competition.

Behind the scenes, located near the headquarters of Apple kubotinuo, a Amazon engineering teams are working hard, optimized Kindle Fire Tablet software performance and performance, to better compete with the iPad. According to people close to the situation said, this team work in progress includes upgrading the Amazon Kindle Fire graphics performance, optimizing hardware and software integration and optimized user interface. Currently, some consumers complain that Kindle Fire still feel like the user interface of ebook readers.

Amazon also recently acquired two small software company--Yap and UpNext--to cover the moving map and vulnerable for speech recognition, these two areas are the Apple iPhone that you want to provide users with unique features. Amazon also allows users to store their music on the server and on a variety of devices to get access to challenge Apple's iTunes music store.

At the same time, Apple is developing a small form-factor Tablet PCs similar to Amazon Kindle Fire. Apple is also closely following the Amazon app store. According to the developers, Apple executives had told them that Apple believes that Amazon take control measures on its app store and iTunes-like approach, making the Amazon app store than Google other app stores, such as more competitive. Now Apple iphone4 is hot product, iphone accessories too, many iphone fans have bought a lot of iphone accessories on best case mall, such as cool iphone4 cases, stylish iphone4 cases, cute iphone4 cases and so on.

At the same time, Apple also tries to rely on new technology for the production of an interactive eBook iBooks Author preemption of the Amazon in the eBook market share. Sources said, as a response to Apple, Amazon is already testing their own similar technology, help publishers produce books.

"They are now competitors, competition between the two will increase in the future," mobile application statistics company Flurry CEO Simon Khalaf said.

Apple on Tuesday reported disappointing quarterly results from the outside, revenue and profit growth and 23%, respectively, lower than analysts ' expectations. Amazon is expected to announce first quarter results on Thursday.

Thanks to Apple and Amazon are still obtained from other profit, complexity of the relationship between the two. Amazon's Kindle is the iPad app store all application downloads during fifth-largest. Amazon also sells a lot of iPod and iPhone on its website.

The pair failed to break the domination of the other market position. Apple maintains the Tablet market share of more than 60%, and Amazon in the eBook sales of share roughly the same.

Apple and Amazon want to enter into each other's territories, aiming to control most consumer network, and provide more services to consumers. While Google, Facebook and other companies and the policy pursued by the two companies are the same, however, Apple and Amazon have a common and critical weapon: unparalleled consumer data, in particular the consumer's credit card number.

Credit card is a bridge connecting consumers, Apple and Amazon can help make it easier to sell software, content and services, this is different from Google and Facebook's online advertising model. Combining these data with devices and software applications, Apple and Amazon created a huge consumer base, offered a variety of digital content and get to those consumers revenue-sharing.

"Any time, as long as there is enormous economic opportunity for control channel, these companies will be tit-competition," interactive Ebook Maker Inkling CEO Matt MacInnis said. He is a former Apple employee.

The two companies have a very different financial situation. Apple through the sale of high-end hardware, has maintained a very high profit margins. Scale of the Amazon by building e-commerce business, gets very thin profit margins.

There is a long-standing competition between Amazon and Apple. 2007 Amazon launched its first Kindle e-book reader hardware device, many Apple insiders will this device as is the online retailer of hobby projects. But the 2010 years after Apple launched the iPad into the Tablet market, Apple is aware of the Kindle ebook on the iPad in a content distribution channel began a direct competition.

Shortly before the introduction of the iPad in2010, when Apple CEO Steve Jobs changed his mind, last-minute decision to increase eBook for iPad features. When he negotiated with the Publisher asks for more favorable terms than Amazon. Apple recently asked United States Department of Justice for alleged price-fixing prosecution. Apple said that these allegations are "untrue", will fight to address complaints.

In September last year, when Amazon CEO Jeff Bezos published the Kindle Fire tablets, he launched a direct attack on Apple. Bezos stressed that Fire without having to synchronize with the computer, wireless backup media content, and this feature is that the iPad was not available. In order to emphasize the iPad will still need to manually sync, he displayed on the big screen with a picture of a pair of Apple USB connector.

Prices of Kindle Fire $ 300 is lower than the cheapest iPad, its screen size two inches is smaller than the iPad. Tablet sales during the holiday shopping season are high. But according to the IDC statistics, Kindle Fire a quarter shares in global Tablet shipments only to 4%.

Earlier this year, the new Apple CEO Tim Cook said that he fully do not fear of Kindle Fire on iPad competition. At an analyst conference call on, Cook said, "a competitor product sales figure represents almost nothing.”

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