When Apple (Nasdaq:AAPL) comes out with a product Verizon (NYSE:VZ), AT&T (NYSE:T) and others scramble for allocation and hope to generate broadband usage and plan fees. Kindle is playing the Wifi route. No expensive plans supposedly. Just use Wifi either at home or in hot spots. Officially no big bills to get upset about.
As users abandon laptops and migrate to tablets the usage stays the same or so we think. Broadband still goes up because the tablet is way easier and more compelling. But the bill for internet use is separate. Psychologically the consumer does not connect the two very closely. Also carriers will not get bullied by an Apple and there will be no complicated co-branding agreements.
Until Kindle Fire becomes more established and then Jeff Bezos strikes. Right now its a game of patience.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in any stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours.
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- Here’s The Full, Unedited Kindle Fire Keynote From Jeff Bezos (AMZN) (businessinsider.com)
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