Competition between Amazon.com, Inc. (NASDAQ:AMZN), Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL) is fierce as far as gaining dominance as the world’s operating system is concerned, and it is just going to get uglier. On Bloomberg, Cheezburger CEO and founder Ben Huh explained why this battle is only bound to get bloodier.
The first question that pops in anybody’s mind after reading the above mentioned list of tech companies is, what is Amazon.com, Inc. (NASDAQ:AMZN) doing there? Amazon’s Fire Phone running on Fire OS, can hardly be seen as capable of fighting giants in the smart phone operating business like Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL). Huh had other ideas and gave an example from history which shows that there is no underdog in the tech business.
“[…] You look at Microsoft from the early 90’s where Netscape was dominant in the browser scene and Internet Explorer came out with a 1.0 and it was a dud. It wasn’t until 3.0 that Microsoft dominated the scene and Google Inc (NASDAQ:GOOGL) is doing the same thing with Android devices. The first one was terrible and now it has got amazingly better […],” said Huh.
While Amazon.com, Inc. (NASDAQ:AMZN) is still not a serious threat to the other two mobile operating system giants, they themselves are battling it, and they have very different business models, according to Huh.
“[…] Google Inc (NASDAQ:GOOGL) is saying let us make hardware a commodity and we will sell you software as a service, what Apple Inc. (NASDAQ:AAPL) is saying is, we will sell you the software for free, everybody gets the same upgrade for free, for life including all of their productivity software, but we will sell you the hardware because the margin is better on hardware […],” said Huh.
It will be interesting to see, if Amazon.com, Inc. (NASDAQ:AMZN) does manage to break through the operating system scene, what will its edge be? Will it find even better margins in hardware like Apple Inc. (NASDAQ:AAPL), or in some other completely different side of the business?
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