What happens when a company’s shine begins to wear off? Remember how BlackBerry shipped more smartphones than ever a few years after the iPhone was launched? More BlackBerry’s, lower margins, and eventually no profit, followed by huge losses. BlackBerry’s shine wore off quickly.
What of Amazon, the online retail giant that has become more of a wooly mammoth than a dominating digital retailer? Amazon’s days of hoodwinking Wall Street seem to have come to an end, with one flop after another. Kindle Fire and Fire Phone go for fire sale prices, and have tumbled down Amazon’s own list of best selling electronics, while the company’s stock is nearing a $100 a share drop from the historic high.
Where Amazon excels is where the standard wireless telephone company excels. It does one thing and does it well. For what it’s worth, what the telephone company does best one thing– telephone lines. Whether mobile or land line, that’s about all they do well. Customer service sure isn’t high on the list.
Amazon does one thing well, too. It delivers products that you purchase online. Selection is broad, pricing is competitive, delivery is quick, and customer service is good. That’s Amazon’s claim to fame. Let me give founder and CEO Jeff Bezos some kudos and props for his attempts to diversify Amazon, despite the obvious failures in electronics.
Electronics? Yes. The Kindle Fire tablet and Fire Phone already are notorious flops. Why? Because they are products that benefit Amazon more than they benefit the customer or user.
Think about it. Both Kindle Fire tablet and Fire Phone exist for a single purpose– to get customers to buy more content from Amazon, by hook or by crook.
How does Amazon’s technology gadgets compare to similar fare from Apple– Mac, iPhone, and iPad?
Apple’s products are loved by hundreds of millions of customers, so they fly off the shelves, get used, get handed down to appreciative generations, and are anxiously awaited by legions of customers who are fans.
Apple makes products that customers want to use for whatever their purpose, and that attitude is reflected in the company’s ‘Your Verse’ video commercials. Amazon’s Kindle, Kindle Fire tablet, and Fire smartphone exist for Amazon’s benefit, while Apple’s products exist to benefit customers.
That’s a distinctly different approach. Amazon’s products flop while Apple’s products fly off the shelves.