- ... sometime during this month, with the release of 2.0 for the Playbook, RIM also announces a partnership with Amazon to access their rich digital content. I think this makes sense for a few reasons.
1. Amazon showed an interest in purchasing RIM back in the summer, and from what I recall, RIM did 'not' rule out any sort of strategic partnershiop with Amazon.
2. Amazon sells the Kindle Fire at either breakeven or a loss, and makes up the money in content and services. Adding Blackberry devices seems to be a win win for the American consumer (unfortunately, I'm Canadian and would likely not fully benefit) they get a great device, Amazon can focus on it's content.
3. Amazon is getting increasing competition from both Apple and Google, lining up a skilled hardware maker with its worldwide network of BB users would likely give it another tool in its competitive tool kit.
4. RIM needs to be able to 'bring the content' to it's users a bit more effectively than it does today, Amazon potentially allows them to leapfrog into this role.
The only barrier I can see (aside from a few techicaol ones), is how do they split the revenue, but I'm sure these guys can figure that out.02-15-12 12:46 PMLike 0 - if RIM provides its BB service to other companies, then why would people by blackberries? then RIM would become a service only, no hardware company...that would kill it, since 70% of RIM's revenue comes from hardware sales02-15-12 12:54 PMLike 0
- That would be the correct business decision for Amazon - instead of selling hardware at razor thin margins or at a loss, focus on content and let other firms take care of the hardware.
Unfortunately their current CEO is egotistical and believes that he can dominate every area, and he would sacrifice profitability to get there.
So far we are getting mixed signals on whether Amazon will change their tact - there is a recent rumor about the Kindle app being available on PlayBook OS 2, but on the other hand there are PB users who claim Amazon has blocked video streaming (although it's unclear if they did it on purpose or PB just needs a flash update).02-15-12 01:11 PMLike 0 -
Jeff Bezos Owns the Web in More Ways Than You Think | Wired Magazine | Wired.com02-15-12 02:31 PMLike 0 - That is the mentality that I was referring to - Jeff Bezos all about dominating here and there at all cost, forgetting that the prime objective of running a business is profitability, which has been declining at AMZN as they over-extend themselves into areas with non-existent to negative profit margin.02-15-12 02:34 PMLike 0
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I can't really see Amazon wanting to get any of RIMM/Blackberry on them at this point. Nameless/faceless OEM would be at a distinct advantage.02-15-12 04:47 PMLike 0
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