Amazon Will Be Tablet Product Strategists’ New Frenemy

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Sarah Rotman Epps

We’ve been beating the Amazon tablet drum for a while—in fact, as early as April 2010, my colleague James McQuivey wrote that Amazon's product strategists should “go head to head” with Apple and create its own tablet. Now, on the cusp of Amazon actually doing so (perhaps as early as October), we’re turning up the volume with a new report explaining exactly how, and why, Amazon will disrupt the tablet market.

This report has been in the works for months. We held off publishing it last week out of respect for Steve Jobs, and we have great admiration for his inventions and influence on our culture.

Even though Amazon taking on Apple is a bit like David taking on Goliath (compare the market cap, profits, and cash position of the two companies), Amazon’s willingness to sell hardware at a loss combined with the strength of its brand, content, cloud infrastructure, and commerce assets makes it the only credible iPad competitor in the market. If Amazon launches a tablet at a sub-$300 price point — assuming it has enough supply to meet demand — we see Amazon selling 3-5 million tablets in Q4 alone.

Amazon’s quick ascension in the tablet market will completely disrupt the status quo. Apple will retain dominant market share, but Amazon will cause product strategists at:

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Why Apps Aren’t The Killer App For Mobile Marketing

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Nate Elliott

It was more than 10 years ago that I listened to my first sermon about the growing importance of mobile as a marketing channel. It was late 2000 or early 2001; I was working at DoubleClick at the time, and my boss left the company to join a mobile startup, claiming we should’ve already had a mobile ad offering in place because it wouldn’t be long before smartphones replaced PCs entirely.

Suffice it to say I’m still waiting anxiously for a chance to throw away my computer -- and likewise, marketers are still waiting for mobile to become a genuinely important marketing channel. It’s not that they’re pessimistic: In fact, the marketers in our surveys rank mobile just a hair behind social media in terms of channels they think will grow in effectiveness over the coming years. But anticipation has never quite equaled reality -- and so most interactive marketers across the US and Europe continue to bide their time, waiting for a mobile marketing opportunity that’ll match the hype.

And that’s where mobile apps appear to come in. Few interactive marketing opportunities are more hyped than mobile apps, but in our search for a mobile marketing channel that really works we’ve lost sight of one crucial point: Marketers’ target audiences don’t care nearly as much about branded applications as the marketers themselves do. In fact:

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Join Us July 27th In San Francisco For An iPad App Strategy Workshop!

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JP Gownder

More than 90,000 iPad-only apps are available today. Forrester clients in a wide range of industries — media, software, retail, travel, consumer packaged goods, financial services, pharmaceuticals, utilities, and more — are scrambling to determine how to develop their own iPad app strategies (or browser-based iPad strategies).

Clients are asking us to help them address both challenges and opportunities associated with the iPad: How do I develop an app product strategy for the iPad? Does the browser matter, too? What will make my app or browser experience stand out from the competition? How will an iPad app complement my smartphone and Web properties?

If you are navigating these sorts of decisions, I'd like to invite you to a very exciting event being hosted by an analyst on my team, Sarah Rotman Epps. Sarah's holding a Workshop on July 27 (in San Francisco) to help clients like you separate the hype from the reality and take concrete steps toward developing a winning iPad app and browser strategy. 

The Workshop: POST — Refining Your Strategy For iPads And Tablets
This Workshop focuses on refining your strategy for reaching and supporting your key constituencies through iPads and other tablets. We'll take you through the POST (people, objectives, strategy, and technology) process, helping you to:

  • Understand where the tablet market is going based on Forrester's latest data and insights.
  • Apply what other companies have done to your own tablet strategy.
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Apple Clamps Down On Paid Content Delivered To iPhones And iPads

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James McQuivey

Today The New York Times is reporting that Apple is changing its policy for allowing apps to deliver content that was paid for somewhere other than in the app where Apple would get a cut. This came to light when Sony was forced to explain why its iPhone and iPad apps were not being released as promised. This is important to illustrate clearly because this is not just about Sony. In fact, it is expected that Apple will apply this same policy to existing apps over the coming months. The most obvious target is Amazon.com's Kindle store, but we have no reason to believe it will stop with eBook retailers; instead, this policy should also affect magazines, newspapers, even videos and games. 

This represents a shift for Apple. Going back to the iPod days, Apple only sold music because it helped sell iPods. When Apple added the iPhone app store, it allowed Amazon to add a Kindle app because it would only make iPhones more valuable to potential buyers. The same held true for the iPad. But now that the company has built such a powerful ecosystem of devices, content, and consumers, it appears Apple is eager to ensure it can collect any and all tolls along its proprietary highways. I note this with some irony because it was just three weeks ago that I praised Apple's surprising openness in a report explaining the iPad's rapid growth:

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Five Takeaways From Apple's "Back To The Mac" Event

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Sarah Rotman Epps

Today Apple announced the new version of its iLife software, the new version of its Mac OS ("Lion"), and two new MacBook Air products. (I recommend PC Mag for great live blogging coverage.) I'm seeing five takeaways for product strategists of devices and content:

  1. Software rules. It’s notable that Apple started off its conference talking about software, not hardware. It’s what you can do with the device that matters. Also, software is now officially known as “apps.” Software doesn’t come in boxes anymore, which make initiatives like HP’s new Download Store look outdated already.
  2. Synchronization drives affinity across devices. Apple is smart to launch the App Store for Macs with apps that sync with iPads and iPhones. In doing so, Apple is trying to maximize the value consumers get from buying more than one Apple device. Companies that are trying to figure out how to compete with Apple on tablets should use their strengths in other product categories to drive their tablet strategies forward. RIM is already planning to do this, by creating the PlayBook as a Bluetooth-tethered device to a BlackBerry. Companies like Toshiba, Lenovo, and Sony should do this as well, bundling tablets with PCs (and TVs and game consoles, in Sony’s case) and have content sync across devices.
  3. The next wave of PC design will be inspired by mobile devices. This isn’t just about apps, it’s also about the experience of using the device. Including a solid state storage drive (SSD) in new Macs give the devices the nearly instant-on, long battery life that consumers have come to expect from mobile devices but struggle to get in a PC.
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