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.
As iPad and other competing tablets becoming common place hotel REVPAR is being increasingly challenged. That TV monitor with a set-top box pulled in a lot of extra revenue for hotel operators. Movies and shows generated user fees. Advertisers wanted to target hotel occupants as well.
Now with the growth of iPad and other competitors the traveller does not need the hotel except for the Wifi service. Hotels will be seeing revpar from movies drop faster than they can adjust Wifi costs. The traveller can watch what they want when they want and are not tied to schedules or offerings.
Disclosure: George Gutowski writes from a caveat emptor perspective. I do not have positions in any hotel or lodging stocks. I do not intend to initiate any new positions within the next 72 hours.