Technology News NOW!

Amazon starts to discover that sales of electronic books will not be the same as selling music online. However, with the launch of its IPAD, Apple has a very different direction, the editors give new offer and Amazon forced to surrender. The company may have thought they could improve its loss-making Kindle e-book titles, much like iTunes.

IPAD has already begun to change the landscape of digital publishing: After a few days of a public battle, Amazon (NASDAQ: AMZN) has been forced to capitulate to a new agreement with Macmillan, one of the six largest publishers, Hachette Friday began to make much noise.

Unfortunately for Amazon, management discovered that one can not but one page (so to speak) by Apple (NASDAQ: AAPL) playbook and apply to any industry. Amazon basically copied from Apple's iTunes model – a fixed rate for voice content, which promotes the sale of equipment – and discovered that Apple has changed the rules. How could this happen?.

Then he leaves the Amazon and other competitors to dominate the e-book distribution. Apple begins using the "iEcosystem " already in place to maintain the hardware and software. Perhaps it 's book $ 9.99, or maybe a price on demand, in which changes in the prices of the books on the go, because people buy more. At this point, Apple can not go back to publishers with a new contract. This is where the strategy gets interesting.

Considering that the notebook market is over 10 years and is characterized by price wars, it is surprising that there is a market in all commodities. In 2009, the NPD said that Apple had captured 91 percent of the premium notebook market, which is defined as equipment with prices above $ 1,000. Apple 's business strategy is defined by some fundamental points: first, the company exposes the patient and the refusal to compete in costs.

Related Stories