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Thursday, 25 April 2013 10:05

Apple in trouble as Amazon guns for core

Written by Nick Farrell



Analyst warns

Victor Basta, managing director of analyst outfit Magister Advisors has warned that Jobs’ Mob could be toast after Amazon has indicated that it will target the company’s core business. Basta said that Amazon has serious aspirations to be a major mobile device company, to fuel its retail and book sales, and find new ways of engaging with its huge base of active credit-card enabled purchasers.

“While Apple is clinging onto its hardware heritage, Amazon comes at the market from e-tail origins and has no such shackles. They are effectively on a trajectory to build 'the next Apple' but from a different direction,” he said. Basta expected to see Amazon accelerate its efforts in mobile devices and there is already plenty of evidence that this is where it is heading. Amazon has bought a range of companies that each provide critical parts of the mobile puzzle.

Amazon has acquired SnapTell, an image matching startup; IVONA Software, a text to speech service; Yap, a voice to text startup; Touchco, a specialist in touch screen technology; and Evi, a Siri-style mobile app that turns phones into mobile assistants, he pointed out.

“Amazon already has partnerships with mobile providers via its Whispernet service, a 3G wireless plan provided by the company, free of charge.”

Basta said that even Inspector Clouseau would not have difficulty working out that Amazon is a business with a deep interest in being a serious mobile player. It has no problem selling hardware at a loss as its prize is in commercialising its content and it is way ahead of Apple in this, Basta said.

Nick Farrell

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