There was a time when Apple was a consumer electronics company, Google was a search engine, Amazon was an online retailer and Facebook a place to connect with friends. Now each of these companies is growing into the space of the others as they compete for new and expanding markets in mobile, social and cloud services.
Amazon’s upcoming Kindle Fire tablet will compete directly with Apple’s iPad. Google+ has taken on Facebook. Android and iOS are direct competitors. And Facebook has been considering its own mobile phone while it also looks to offer content, advertising and retail services.
Fast Company analyzes the “future of the innovation economy” in this regard, with a particular emphasis on the inevitable war and its major players.
“Amazon, Apple, Facebook, and Google will not last forever,” the article suggests. “But despite this oncoming war, in which attacking one another becomes standard operating practice, their inevitable slide into irrelevancy likely won’t be at the hands of one of their fellow rivals. As always, the real future of tech belongs to some smart-ass kid in a Palo Alto garage.”
Amazon CFO Tom Szkutak is predicting record sales of the Kindle and Kindle Fire. However, the company also anticipates a lag in revenue after initial sales of the devices, as consumers get acquainted with their machines before purchasing content for them.
“Much of the profit from these products would come from digital purchases by consumers post-sale,” reports The Next Web.
“Once a customer has purchased a device, what else do they buy? We certainly have some data now that we didn’t have prior to the launch [of the ad-based Kindles]. Once the customer purchases the Kindle and are carrying around this massive selection at their fingertips, they buy more content,” said Szkutak.
In a related Geek.com post, it was noted that the Kindle Fire may become the best-selling Android tablet ever, as pre-orders continue to flood in.
Amazon is producing “millions more” tablets to match the demand that has overwhelmed the company since announcing the slate a month ago.
The Fire will sell for $199, possibly making it an attractive alternative to Apple’s iPad, which starts at $499.
App downloads on Google’s Android platform now top iPhone and iPad combined, even in the absence of any competitive Android tablets.
The OS accounted for 44 percent of all app downloads for Q2 of this year, according to a recent study by New York-based ABI Research.
In the new Steve Jobs’ biography, the Apple founder rails against Android as a “stolen product,” one that he vowed to go to “thermonuclear war” in order to stop its success. Microsoft CEO Steve Ballmer recently derided the OS as well, adding you need to be a “computer scientist” to understand Android phones.
“But a flood of low-priced handsets this summer has catapulted Android ahead of Apple for the first time in terms of app downloads,” reports the Daily Mail.
However, Apple still leads in the per user category. “Android’s app downloads per user still lag behind Apple’s by 2 to 1,” explains Dan Shey at ABI.
Recent speculation has suggested that Apple will produce an “iPad mini” to compete with the $199 price tag of the Amazon Kindle Fire, but many analysts doubt the possibility.
For one, if Apple is looking to compete with the Kindle Fire — which it has already denounced as a threat — it would have to compete in price, not size. A recent study showed that two-thirds of consumers want 10-inch devices while only 9 percent want a 7-inch tablet.
“We expect Apple to maintain its premium price point on tablets,” wrote Forrester analyst Sarah Rotman Epps. “Apple will not allow Amazon to dictate the terms of competition — Apple makes its own rules.”
Additionally, the new size would complicate the development of apps, which have been specifically designed for the 3.5-inch and 9.7-inch displays of current Apple devices.
And the final reason: “Steve Jobs emphatically stated that 7-inch tablets are too small for a pleasant touchscreen experience,” writes Wired.
The MoPix digital platform allows filmmakers and content creators to inexpensively distribute their projects as paid apps.
“Filmmakers choose from templates and customizable options to create a DVD-like experience that bridges video content with the interactivity, enhanced features, and extra content of an app,” according to the LAUNCH blog.
Filmmakers can target multiple devices including the iPad, iPhone, Kindle Fire and Android devices. The developers charge a one-time fee and a percentage of sales.
MoPix will demo the app at the LAUNCH PAD Tablet Conference this Friday in Mountain View, California.
While Android has so far trailed Apple in enterprise adoption, GigaOM reports that Motorola’s subsidiary 3LM, “has finally launched its security, management, and remote access platform for Android devices” that will enable:
“Device encryption of full memory and SD card data; selective encryption of corporate applications; remote wipe capabilities and whitelist/blacklist of applications; and control applications’ access to corporate resources.”
“Enhanced security and control of device, OS, and applications; remote installs of critical enterprise application; device tracking.”
“Secure remote access to enterprise resources and device health and status checking.”
The post also indicates that AT&T has announced “Toggle,” which allows Android users to separate professional and personal use by creating two different modes. This will help keep personal data private from IT managers.
Apple has made gains in the enterprise with iPad and iPhone integration, but this news suggests that “with better management tools that augment what already exists on Android, it may help boost Android’s acceptance in the enterprise…”
In order for Amazon to stay competitive in the cloud computing market, its S3 (Simple Storage Service) and EC2 (Elastic Cloud Computing) could take some notes from Apple’s iCloud (launching October 12).
Seamless integration “provides iCloud with huge scale advantages over Amazon,” suggests Forbes, by wirelessly storing content from iPhones, iPads, the iPod touch, Macs or PCs and automatically pushing content to all devices.
“Consumer-centricity” makes cloud-computing user-friendly with targeted features like iTunes Match. “This feature prevents the need to painstakingly upload music into the cloud as iTunes Match itself creates a library matching the user’s existing playlist.”
And pricing. “While the iCloud provides free 5GB-worth of storage for documents, mail, and back-up for iOS 5 users, Amazon’s S3 service charges users for even the first gigabyte of storage space.”
The article points that little is yet known about Amazon’s other competitor, Google’s GDrive.
A comprehensive comparison between Netflix and other streaming services shows that, even after the recent criticism regarding the split of its businesses, “Netflix is still the champ, but only if you count both its the streaming and DVD mailing services.”
In his evaluation of current offerings, David Strom of ReadWriteWeb examined services such as Amazon Prime, Hulu Plus, Vudu.com and Justin.tv.
“Overall, once you leave Netflix you will find fewer choices and searching won’t be as easy to find something to watch,” he writes. “Netflix has a great search engine that won’t just look for movie titles but also check for actors and other principals involved in the movie itself, something the other services don’t do as well at.”
Another upside to Netflix is the ability to use devices such as the iPad or TiVo box to stream movies. While of the services enable streaming to your Windows or Mac Web browser, they’re not all compatible with other devices.
“So while you might be upset about paying for two bills for your video rentals from Netflix, unless you are willing to spend more time searching for content, you are probably better off sticking with the service for the time being, at least until the others catch up with their content licenses,” Strom concludes. “Or if you already have a cable TV subscription, investigate whether it offers something similar to Comcast’s Xfinity and see what their coverage is there. Ironically, that might be your best alternative to Netflix after all.”
Rob Wiesenthal, chief financial officer of Sony America and chief strategy officer of Sony Entertainment, says TVs will get access to video content through tablets which would enable, for example, Sony’s Video Unlimited subscribers to go to a friend’s house and “throw” a film to the TV set.
“If you think back five years, it was all about the boxes; Tivo, Slingbox, Roku,” he said. “I think consumers really had box exhaustion.” Apple’s AirPlay, for example, allows iPads and iPhones to wirelessly connect to TVs.
Sony is using the Digital Living Network Alliance standard to interoperate with different manufacturer’ devices without the need for a box.
“Other benefits include the lure of offering more targeted advertising through an IP-enabled tablet than has proved possible through set-top boxes, and the advantages of finding content on a tablet rather than by aiming a remote control at a TV 10 feet away,” reports Financial Times.
In order for this approach to work, however, home Wi-Fi networks will require the capacity to transfer large video files without interruptions and cable providers will need to be willing to make content available this way.
Chris Espinosa, a longtime Apple employee, gives his impression of Amazon’s Silk and Kindle Fire announcements.
“Amazon will capture and control every Web transaction performed by Fire users. Every page they see, every link they follow, every click they make, every ad they see is going to be intermediated by one of the largest server farms on the planet,” Espinosa writes in his blog. “People who cringe at the data-mining implications of the Facebook Timeline ought to be just floored by the magnitude of Amazon’s opportunity here.”
“Amazon now has what every storefront lusts for: the knowledge of what other stores your customers are shopping in and what prices they’re being offered there. What’s more, Amazon is getting this not by expensive, proactive scraping the Web, like Google has to do; they’re getting it passively by offering a simple caching service, and letting Fire users do the hard work of crawling the Web,” he adds. “In essence the Fire user base is Amazon’s Mechanical Turk, scraping the Web for free and providing Amazon with the most valuable cache of user behavior in existence.”
“They use a back-revved version of Android, not Honeycomb; they don’t use Google’s Web browser; they can intermediate user click-through on Google search results so Google doesn’t see the actual user behavior. Google’s whole play of promoting Android in order to aggregate user behavior patterns to sell to advertisers is completely subverted by Amazon’s intermediation. Fire isn’t a noun, it’s a verb, and it’s what Amazon has done in the targeted direction of Google. This is the first shot in the new war for replacing the Internet with a privatized merchant data-aggregation network.”
Amazon has unveiled the Kindle Fire — a 7-inch touch-screen, color, and Wi-Fi tablet with dual-core processor that will sell for $199. The new tablet was announced by chief exec Jeff Bezos at a press event yesterday in New York City.
The Android-based device will offer access to Amazon’s app store, books, streaming movies and TV shows. Moreover, the expectation is that it will increase sales for Amazon’s other merchandise. Fire is available for pre-ordering and will be available November 15.
“The online retailer is gambling it can succeed with its tablet where several other giants, including Hewlett-Packard Co. and BlackBerry maker Research In Motion Ltd., have so far failed,” reports The Wall Street Journal. “Unlike those companies, Amazon already has a vast library of digital content to sell and tens of millions of credit-card numbers.”
The article suggests that the Kindle Fire may have an advantage over other tablets that have attempted to take on the iPad: “Amazon’s library of digital content, which its tablet users can access. Customers can pay $79 a year for a service known as Amazon Prime, which gives them access to 11,000 movies and TV shows, as well as unlimited two-day shipping for physical goods purchased on Amazon.com. Amazon also sells single movies, TV shows and music songs, with a catalog that competes with that of Apple’s iTunes store.”
Amazon also introduced three new Kindle e-readers — a touch-screen 3G version for $149, a touch-screen Wi-Fi version for $99, and a non-touch-screen model for $79.
Disney announced this week its AppMATes Mobile Application Toys that use a sensor on the bottom of each toy, which identifies the object to an iPad app (no cable or Bluetooth connection required) and creates a virtual play mat for exploration and games.
“The ‘Cars’ toys are meant to be driven across the top of an iPad, interacting with a downloadable ‘Cars 2’ Appmates app, which lets kids drive around courses, race and complete missions,” explains Engadget. “The app will be offered up as a free download through iTunes, and the cars will run $20 for a two-pack — the different toys unlock different features, according to Disney.”
“We have cracked the technology code in changing the way kids play with their toys,” said Sunny Lauridsen, director of digital toys for Disney Consumer Products. “Kids will always use toys to play out their favorite Disney stories, but Disney Appmates now allows them to include technology which has become a way of life for them through a beautifully rich app.”
According to the press release: “Each toy unlocks different features and content within the app specific to the character, allowing kids to come back over and over to enjoy an imaginative, open-ended play experience using the Appmates toys. Fans can download and test the app by simply using their fingers to drive a virtual car through the world, but the play experience is optimized to come to life with the Appmates toy vehicles.”
The toys will be available in October through the Apple Store, Apple Store online, Disney Stores, DisneyStore.com and national retailers.
Amazon is expected to announce its long-awaited Android tablet this morning at a press event in New York City.
The 7-inch backlit Kindle Fire is expected to launch by the second week of November, just in time for the holidays. “The iPad has many challengers, but analysts say Amazon’s could be different — it has a chance to be more than a wannabe,” reports The New York Times.
Amazon built its own custom version of Android, has included a streaming video service, and will feature the Amazon MP3 service and the Kindle bookstore.
In related news from The Hollywood Reporter, major magazine publishers — including Hearst, Conde Nast and Meredith — have signed deals to sell digital versions of their publications. One big holdout is Time Inc., but it’s being reported that a deal could be reached “hopefully by the end of the year.”
One publisher with an Amazon deal said: “You’ve got beauty and design with Apple, which we love. But with Amazon you have marketing, and ease of use. We’re very optimistic.”
Amazon’s terms seem to be similar to those offered by Apple. Publishers get 70 percent of Amazon sales while the retailer shares customer information with the publisher. But, the report notes that those numbers could fluctuate depending on the title and customer offer.
We’ll have more on this story following the press event…
Turner is working with Google TV to launch apps giving users who authenticate they are pay TV subscribers access to full-length episodes of TBS and TNT shows.
Turner is already doing this on the Web and through iPad and iPhone apps. The broadcaster confirmed it will offer the new apps, but did not say when they’d be available.
The next version of Google TV is expected in a few weeks. “The second iteration of the platform will be based on Android 3.1 (a.k.a. Honeycomb) and have access to the Android Market,” reports GigaOM. “Dedicated apps as well as authentication features could possibly convince other TV networks to embrace the platform as well, but it’s unclear how this would be received by consumers.”
Consumer interest in Google TV had been initially tepid but is showing some signs of improvement. Logitech, for example, was forced to drop the price of its Revue set-top box from $250 to $99 in July, but then the companion box to Google TV “made a brief appearance in Amazon’s list of the ten best-selling gadgets last month,” indicates the article.
A year ago, laptops made up two-thirds of Wi-Fi connections at airports. Today, mobile devices such as smartphones and tablets comprise 59 percent of the total, reveals new data released this week by Boingo Wireless.
Boingo suggests that laptops are not going away — in fact, their numbers have doubled since 2007 — it’s simply that mobile devices are proliferating at a faster rate, fueled by the launch of the iPhone in 2007 (Apple’s iOS dominates the mobile segment with 83 percent of total devices on Boingo’s network).
Not surprisingly, the report suggests similar findings for inflight Wi-Fi, as offered by the likes of Gogo. In the air, iPads make up more than one-third of connections, along with 41 percent for PCs and 20 percent for Macs.
According to All Things D: “Mobile devices are also gobbling up a lot more data than they did just two years earlier, Boingo said. On a monthly basis, the average mobile device consumed 211 megabytes of data in June, compared with 114 megabytes in May 2009. And the devices are also consuming that data in less time, gulping an average of 8.9 megabytes in every 10 minutes of use, compared with 3.7 megabytes in the same period two years earlier.”
