MacRumors posted an interesting graph:
As these numbers indicate the level of sales, would you choose to sell iPhones (red) or iPads (grey) over selling music and movies (orange) or MP3 players (green).
Apple has always maintained that the iTunes Store is a break-even affair for them. If this is true (and the numbers seem to bear it out), why would anyone launch a store for media and expect to make a lot of money?
IMHO the reason Apple is so successful is because they have a hardware store AND a content store, and mesh them so seamlessly, it’s a piece of cake to buy something. The two stores shouldn’t be separated, as that implies if you take away the music/video/apps you won’t effect the hardware sales.
Thus, Amazon’s announcement today are the first real competition for Apple. Amazon have their own content which even exceeds Apple’s when it comes to books.
Things just got interesting. And about time – Apple was able to coast for a little bit there, because no-one was even close to touching them.
I’m extremely bullish about the Amazon Fire. But it’s going to murder the also-ran Android tablets. I don’t think it’s going to touch the iPad.