Amazon will do very well on digital goods sales. But apps are actually a small chunk of dollars in the grand scheme of things -- especially on tablets.
Amazon is going to recoup their costs through additional commerce on Amazon.com. That's what people use tablets for and it's a massive market that Amazon actually has leverage in. It's a very calculated move to build a tablet first and not a phone. The real target is driving more sales on Amazon.com
But apps are actually a small chunk of dollars in the grand scheme of things -- especially on tablets.
I think it's important to keep this in mind. As successful as Apple's app store has been, 1 billion in profit is still relatively small potatoes. Android's significant outpacing of Apple in sales despite a much weaker app market underlines this.
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Amazon will do very well on digital goods sales. But apps are actually a small chunk of dollars in the grand scheme of things -- especially on tablets.
Amazon is going to recoup their costs through additional commerce on Amazon.com. That's what people use tablets for and it's a massive market that Amazon actually has leverage in. It's a very calculated move to build a tablet first and not a phone. The real target is driving more sales on Amazon.com
But apps are actually a small chunk of dollars in the grand scheme of things -- especially on tablets.
I think it's important to keep this in mind. As successful as Apple's app store has been, 1 billion in profit is still relatively small potatoes. Android's significant outpacing of Apple in sales despite a much weaker app market underlines this.