) is working hard to sell Kindle e-books in China, but the
company recently hit a few
that could slow down this initiative.
Once those issues have been taken care of, Amazon will be free
to invade China with a plethora of tablets and e-readers. Next
might even have a smartphone
to add to that list.
When that day comes, all eyes will be on the tablet space to
see what kind of an impact Amazon may have on the market, if
Thus far, Apple (NASDAQ:
) and Amazon have been the only two companies that have released
a successful tablet in America. In August, Amazon announced that
it had acquired
of the domestic market.
Tablets from Samsung, Motorola, Research In Motion (NASDAQ:
) and other manufacturers have yet to garner a significant
having some success
with the Nexus 7, but without any domestic sales or market data,
it is impossible to say exactly how well the tablet is
By leading with the Kindle store in China, Amazon appears to
be somewhat neutral -- like a non-threatening aid to Android and
iOS. In reality, the company is cleverly planting the seed for
massive growth. It may not be ready to sell its tablet in China,
but when that day comes, millions of consumers may already be
accustomed to Amazon's platform. This could be crucial to the
Kindle's global success.
Even then, Amazon will still be forced to compete with Apple,
which has already acquired a
of the growing tablet market in China. The iPad accounted for
more than 70 percent of the two million tablets that were sold in
China last quarter. Amazon will have to work really hard if it
expects to meet or beat those sales figures.
In addition to the brand advantage, Apple also has the luxury
of selling iPads through its own retail outlets in China. While
they may not produce the
that consumers expect to see in America, Apple Stores have proven
to be a key part of Apple's worldwide success.
This is one of the reasons why Amazon is rumored to start
building its own stores in America -- to compete with Apple on
its own turf.
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.