Why an Apple ‘iTablet’ would trounce Kindle DX and Amazon wouldn’t mind

“The new Amazon Kindle DX has a few weeks to live—and the magazine and newspaper industries may not have much longer. As soon as Apple unleashes the rumored iPad, Amazon’s attempt at hardware design will vanish quicker than Betamax. Amazon won’t mind, but magazine and newspaper publishers sure will,” Sascha Segan writes for PC Magazine.

“The Apple people usually complain about how much they hate a product category just before they enter it. Recently, Apple’s COO Tim Cook said that he thinks netbooks are pretty useless, and that the iPod touch is Apple’s netbook. This feeds into BusinessWeek’s rumor about the ‘iPad’—a $699 tablet that would look like a bigger iPod to,” Segan writes.

“Don’t worry too much about the iPad’s $699 price. Apple has been open to carrier subsidies, which typically shave $200 or more off the price of a device in exchange for locking you into a contract,” Segan writes. “That business model has been tremendously successful—so successful that unlocked phones, while available in the U.S., have never been able to take off. Apple has also always had strong relationships with colleges and universities, so we’re sure to see educational discounts to promote the iPad as a virtual textbook.”

Segan writes, “The Kindle DX seems to have three primary markets: textbooks, newspapers, and magazines. Other companies, including Hearst and News Corp., are said to be going into the media pad space to save their magazine subscription dollars. They’re doomed. In exchange for your monthly contract, the iPad will give you the whole Internet, and 35,000 iPod touch applications, including—get this!—the Amazon Kindle application.”

Full article here.

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