Wednesday, September 12, 2012
From a PR perspective, what Apple and Amazon are doing to compete in the tablet market is right even though they are taking opposite strategies. Apple is charging high prices for its iPad. Amazon is giving away the Kindle at or slightly below cost. Apple's philosophy is that a better-designed product is worth more, and people are willing to pay for it -- which they are. Amazon's concept is that profit comes from material put on the tablet such as e-books. It appears that both companies are doing well pursuing their objectives. If I were forced to bet on one or the other business, history would tell me to bet on Amazon because the price of electronics sooner or later fall to a commodity, but as long as Apple can balance on a high wire and make billions, who can argue? Of course, the PR strategies for the two companies also are opposed. Apple communicates better design. Amazon communicates technology for the masses. It would be fun to work for either company right now.