Why Amazon is Not the New Apple

Over the last few months I have heard and read many comments about the idea that Amazon is the new Apple. In fact, in a very good piece in Forbes, E.D. Cain asks if Amazon is the new Apple directly. He makes some good points to suggest that Amazon is very much following in Apple’s footsteps and even has created some innovations of their own with their price check mobile app and their Kindle book purchasing process.

But I believe the answer to this question is no, Amazon is not the new Apple. The reasons for this are many. Now, don’t get me wrong. I have great respect for Amazon and Jeff Bezos. However, Jeff Bezos’s is not the second coming of Steve Jobs and he would be the first one to tell you that. Amazon’s business is very different from Apple’s and though they have some similar goals, such as creating an ecosystem of products and services for their customers, their approaches differ greatly.

Perhaps the most glaring difference is Apple’s total approach to the market. Most importantly, all of their hardware, software and services originate inside Apple. They write the OS so they can customize hardware to be maximized around their proprietary OS platform. Amazon, as well as all of the other vendors competing with Apple, must rely on Google or Microsoft for their code and are always at a disadvantage to Apple in this area.

Also, Apple has all of their design in-house led by recently Knighted Sir Jonathon Ives. Most of the vendors have to rely on ODMs for their products and this too is a disadvantage when it comes to industrial design and its integration with their software offerings.

While Amazon is the world’s greatest retailer, Apple’s stores are re-writing the rules of technology retailing around the world. You buy from Amazon if you know exactly what you want since you can’t touch or feel the products online. But the reason that Apple is driving millions of people into their stores around the world is that Apple knows full well that the majority of potential users are not tech literate and need help buying exactly what they need.

But one thing that really distinguishes Apple from Amazon and their competitors, is that Apple is a leader and all of the others are followers . This started when Apple introduced the Mac itself and decided to use the 3.5 inch floppy in the Mac and made their competitors kill the 5.5 inch floppies back in 1985-1986. Apple was the first to put a CD Rom drive in Macs in 1989 and ushered in the era of multimedia computing. By 1992, all PCs had CD Roms inside. In 1999 Apple added color to PC cases and created the all-in-one PC. Now all PCs have color and all-in-ones rule the desktop market. Even more recently, Apple created the first real “ultrabook” with the MacBook Air and now everyone is chasing them again.

Apple’s genius is also in re-inventing products, which continues to reinforce their leadership position. They did not invent the MP3 player. They did however re-invent it. They did not invent the Smartphone. They re-invented it. They did not invent the tablet. They re-invented it. And in each of these product categories, they force their competitors to play catch up.

What’s more is that Apple casts a long shadow in this area. A more current example is the hybrid computing. In my 2012 predictions, I stated that we should see many hybrids (laptops with screens that come off and double as tablets) this year. But, many of the vendors I talk to who have hybrids in the works have told me that their biggest fear is that Apple will do a hybrid and do it so well that it will force them back to the drawing boards and put them behind, even though they thought they would be ahead. Now, nobody even knows if Apple is doing a hybrid but just the threat of Apple doing one strikes fear in their competitors.

But in the end, the fact that Apple continues to play a major leadership role in the industry is the real reason Amazon and other companies, who might like to think that they could become the next Apple, are still only followers. It is unclear to me if Apple will ever give up that role given their complete control of their ecosystem and the rich talent they have inside the company. But until another company can create this same dynamic, I suspect that there will not be another company that can lay claim to being the next Apple.

Published by

Tim Bajarin

Tim Bajarin is the President of Creative Strategies, Inc. He is recognized as one of the leading industry consultants, analysts and futurists covering the field of personal computers and consumer technology. Mr. Bajarin has been with Creative Strategies since 1981 and has served as a consultant to most of the leading hardware and software vendors in the industry including IBM, Apple, Xerox, Compaq, Dell, AT&T, Microsoft, Polaroid, Lotus, Epson, Toshiba and numerous others.

8 thoughts on “Why Amazon is Not the New Apple”

  1. Amazon and Apple are definitely different. Apple doesn’t sell lawn mowers, food, or underwear, but Amazon does. Apple has retail stores but Amazon doesn’t. Pretty different businesses!

  2. Amazon is a digital Sears for the 21st century with a few of their own “Kenmore” branded items like the Kindle which also happens to serve as a digital Sears catalog for the 21st century.

    But mostly Amazon is simply an internet storefront, selling a loss leader device (Kindle) exploiting a loss leader service (Amazon Prime) selling mostly 3rd party merchandise at razor-thin margins. NO, Amazon is not the new Apple.

  3. Amazon and Apple are in two different industries. Amazon is more involved in web services and simplifying the online shopping experience, and Apple manufactures computers and gadgets. Amazon sucks at manufacturing electronics, and Apple super sucks at web services. I can see a bit overlap but the leader is clear in both cases.

  4. Excellent beat ! I wish to apprentice whilst you amend your site, how could i subscribe for a weblog website? The account aided me a applicable deal. I were tiny bit acquainted of this your broadcast offered bright clear idea

  5. Nice post. I used to be checking constantly this blog and I am impressed! Extremely helpful information specially the ultimate section 🙂 I deal with such info a lot. I used to be looking for this certain info for a long time. Thank you and best of luck.

  6. We are a gaggle of volunteers and opening a new scheme in our community.
    Your web site offered us with helpful information to work on. You have
    performed a formidable job and our entire neighborhood can be grateful
    to you.

Leave a Reply

Your email address will not be published. Required fields are marked *