Why Amazon can't win a tablet price war against Google

31.03.2012

The first category has two players: and . In both cases, and Sony have business models that depend on making revenue and profits from the sale of tablet hardware, as well as from digital content and online services.

Apple has , and Sony offers the that sells PlayStation Network games, Video Unlimited movies and TV shows and Music Unlimited music.

The second category are those companies involved in selling digital content and online services, but which use tablets as boxes. They're happy to make no money on tablets -- or even lose money -- as long as they can give their digital offerings an advantage over competitors. This category includes Amazon, and .

The third category includes companies that sell tablets for profit, rather than as containers for digital content and online services. This category includes Samsung, Asus, Research In Motion, Acer, Motorola, Toshiba, Archos and many others.

All three categories will continue to exist side-by-side indefinitely, but there will be winners and losers within each category.