May 142011

Mark Reschke, one of the three wise men over at Three Guys and a Podcast (T-GAAP) posits that Amazon – and the recent intimations that the company will be releasing a competitor to the iPad – is the biggest threat to Apple.

They shouldn’t be, but they are.

Although Amazon isn’t what I’d call a hardware company, they obviously have experience with its manufacturing. I also wouldn’t call the Kindle an unmitigated success: it wasn’t until Amazon slashed its price in response to the announcement of the iPad that they were anything but a niche product. To this day, no one knows how many of these things have been sold, let alone what the margins on them are.

The credential that makes Amazon dangerous to Apple is the reason I recommended they take over the Android Market: their selling infrastructure, specifically with media. This, combined with their size, makes them a capable adversary for Apple.

Why size? Because Andy Rubin’s shop isn’t going to yield significantly on the Android experience to a nobody – especially with all the mouth moving at Google’s I|O about anti-fragmentation. And as Reschke mentions, for Amazon’s tablet to be successful, it’s going to have to deviate from other offerings to leverage the strength of their media library. If Google is interested in having their Android tablets do anything but fail miserably, Amazon is their best bet.

Game on, Bezos.

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