“Both Apple and Amazon sell smartphones. Both Apple and Amazon sell tablets. They both sell music and videos. But Amazon can never be like Apple. Ever,” John Martellaro writes for TheStreet.
“The difference between Apple and Amazon is in the business model of the two companies,” Martellaro writes. “Currently, Amazon is about the business of laying the groundwork to not just sell stuff more efficiently but to so completely understand every customer, in a digital sense, that it can greatly flourish by selling ever more stuff… The self-admitted basic business model of the Amazon Kindle Fire and the Fire smartphones is to reduce the friction when shopping… The long-term effect of this kind of intervention cannot be favorable for a company, no matter how good it makes the bottom line look in the short term. That’s because it flies in the face of what people consider more important than spending, and that’s human responsibility. A rough analogy is a bartender who keeps on selling a customer strong drinks late into the night because it’s good for business. Then the customer drives home — with predictable results.”
“Apple has had quite a different history than Amazon. The passion of Steve Jobs (and now Tim Cook) to use technology to make our lives better, to reside at the intersection of the technology and the humanities, means Apple has a different business model for selling hardware,” Martellaro writes. “Apple isn’t isn’t trying to sell stuff for the sake of commercial success. Apple sells things that allow us to be more human, more empowered and have more dignity. For that, Apple is embraced and rewarded financially.”
Much more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]