Amazon Getting Into Electronics Business?
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Amazon has seen many highs and few lows in the past few years. While the profits have always been an issue for the company, the company is strong enough to handle almost anything these days. The introduction of Kindle seems to have boosted Amazon sales and open new doors for the company. When I first heard about Kindle 1.0 plans, I was a bit skeptical. After all, hardware doesn’t seem to be Amazon’s core competency, and any company that focuses on non-core projects usually ends up paying dearly in the long run. But Amazon is not stopping there. AmazonBasics is the latest project by Amazon to expand its business and reach more customers. AmazonBasics products are expected to be recession friendly and save customers money on accessories such as raw DVDs and cables. But is that all Amazon planning?
Let’s see how Amazon is defining AmazonBasics:
AmazonBasics is a brand of quality consumer electronics products at lower prices. Watch this space for additional AmazonBasics items to be introduced.
That clearly shows that Amazon is not limiting itself to just cables and DVDs when it comes to AmazonBasics. So we could technically see Amazon start selling its own brand of electronic gadgets in the future. Why does this matter? A few experts have claimed that Amazon is not too committed to its Kindle product line and is ready to pull the plug and focus only on the software side if better e-book readers came along. I am sure that’s not what Jeff Bezos has planned for the Kindle product line, and the latest move by Amazon could be taken as a hint that Amazon does not necessarily mind selling its own brand of electronics. So the rumors of Kindle’s demise are not true.
Perhaps Amazon needs to help its Kindle customers save money as well. We have been waiting for Amazon to offer better deals on e-books. It’s great that Amazon is planning to save people money with AmazonBasics, but e-books are still overpriced at $9.99. Perhaps dealing with disgruntled publishers is a can of worms Amazon is not too eager to open.
Your take: is AmazonBasics store a smart concept for Amazon?
