October 5, 2011

Apple's iCloud Ups the Ante With Amazon

Apple's iCloud Ups the Ante with Amazon

The race is on for control of consumers' digital media content purchases, storage and access. Amazon and Apple seem to be in the lead but so far Apple certainly has captured the the public's imagination and momentum with its iPhones and iPads.

Meanwhile, Amazon's recent launch of new devices, particularly its Fire tablet along with its successful history of Kindle readers will enable growth and ease of purchasing both goods and digital content.

Nevertheless, Amazon may have a substantial advantage in that as the #1 internet retailer people using its devices will be able to easily order Amazon's other products beyond digital content. Apple does not have that diverse product line. Amazon's business model seems to me more realistic, but I cannot discount the 'gotta have' emotional attachment that Apple has created for its products and its strong profitability.

"Amazon is the Internet's No. 1 retailer by sales. The company built massive server farms to deal with data generated by its online marketplace. Technology developed for its Amazon Web Services unit, the largest renter of on-demand storage space to other companies, powers some of the Fire's capabilities. Amazon's Kindle e-readers gave it a foothold in digital media devices and e-book sales.

Meanwhile, the popularity of Apple's consumer gadgets guarantees that content will be available for them. The company said Tuesday it has sold more than 250 million devices running its wireless operating system; meanwhile, its iTunes Store is the world's largest music retailer. Apple also has built its own huge server farm in North Carolina."

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