John Paczkowski

Recent Posts by John Paczkowski

Fire Will Kindle Interest in iPad

Amazon’s new Kindle Fire tablet isn’t a threat to the iPad. It’s a benefactor.

That’s the new theory being put forth by J.P. Morgan analyst Mark Moskowitz, who believes the Fire will end up being a catalyst for additional iPad sales.

Moskowitz met recently with Apple CEO Tim Cook and CFO Peter Oppenheimer, and came away with the impression that Apple isn’t much bothered by Amazon’s new lower-priced entrant in the tablet market.

“If anything, we think that Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market, and here, these consumers could gravitate to more feature-rich experiences,” Moskowitz said in a note to clients. “We think that Apple is not seeing much pressure from lower-priced tablets.”

In other words, the Fire may well expand the iPad’s addressable market by drawing more price-conscious customers into it — customers who might someday upgrade to the more capable and versatile iPad.

“Given all the investor interest in the Kindle Fire, competitive risk in tablets was one focal point of our meeting,” Moskowitz said. “[But there’s] not much concern in tablet town.”

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work