Where does Google kick Apple’s butt? Android marketshare. Where does Samsung kick Apple’s butt? Smartphone marketshare. Where does Amazon kick Apple’s butt? Electronic book publishing.
Profits aside, Apple puts up a good fight, but continues to incur losses everywhere except profits and mindshare. And with electronic books. Amazon owns the rapidly growing industry and despite Apple’s collusion with the publishing industry to force a change in business models, Apple and publishers lost to the US Justice Department.
That turn of events allowed Amazon to force its monopoly weight upon the industry, inhibiting sales of ebooks from some publishers unless they bend to Amazon’s will (new contract terms, pricing, etc.).
That’s what happens when a monopoly abuser wins in court.
What’s Amazon doing now that the Justice Department decided to eliminate any vestige of reasonable competition? Abuse.
As Microsoft abused its monopoly powers in the last century, it appears Amazon wants to do the same. New ebook offerings from some publishers are being withheld from Amazon’s inventory. Hey, it’s an ebook. The time between a new book being given to Amazon to sell and being offered for sale on line should be measured in minutes.
No, Amazon wants publishers to knuckle under the company’s knuckle dragging CEO dictator. “Accept our terms or perish” seems to be Amazon’s new mantra. Amazon already dominates and dictates ebook pricing. Publishers are required to accept or perish because there is so little competition among ebook distributors; Amazon being the largest by far.
Most estimates put Apple’s share of the growing ebook publishing industry at less than 20-percent, while Amazon’s is considered to be far more than three times Apple’s, with Kindle alone accounting for 55-percent of the industry’s sales.
Does anyone besides the US Justice Department see a problem with that? Apple has put up a good fight to bring competition and diversity to the electronic book publishing industry, only to be thwarted by the industry giant’s monopoly and the governments penchant to reward monopoly abusers and to kowtow to those who fill political campaign coffers.
As it stands now, Amazon decides what gets published, what gets promoted, when orders begin, and contract terms because competitive choices are few and less substantial than that of a monopoly.
Fortunately, Apple has the financial wherewithal to continue to fight the good fight. Meanwhile, the shine is off Amazon as investors realize the company is more akin to The Emperor’s New Clothes than the dominant online retailer that Amazon purports to be. The stock is down substantially in 2014, thanks to profits that are still elusive to Amazon.