Should Apple Let Amazon Sell the iPad? - Page 2
It’s also a different market because now there’s the Kindle in it. Analysts discerned that Amazon sold almost one million Kindles in the fourth quarter – the active holiday buying season – and all of those units sold through Amazon's own distribution channel. Although Amazon started changing how book publishers think about content distribution, and established a digital delivery system that was innovative and ultimately increased consumption of books, they also did it through a model that heavily discounted best sellers for the Kindle platform.
Discounting is just part of Amazon’s DNA, the result of operational efficiency and low touch support.
The advent of the iPad, likely an exponentially more distributed platform than the Kindle, has brought a rebellion from publishers against discount pricing, forcing Amazon to concede and reset book prices for bestsellers. And that is exactly the strategy Apple should take with Amazon on iPad distribution: rebel. Apple should de-list Amazon as a reseller until the cease Amazon will manage the site promotion of Kindle and iPad just like it is managing current iPad search results, providing links to cross-sell the Kindle in the results set for an “iPad” query.
Given the explosion of Apple retail locations, and the correlating growth in Mac share, if ever there was a time to hold an authorized reseller to their agreement, it is now with the launch of the iPad and it most definitely is with Amazon.