“What we are doing is offering premium products at non-premium prices,” Bezos says. Other tablet contenders “have not been competitive on price” and “have just sold a piece of hardware. We don’t think of the Kindle Fire as a tablet. We think of it as a service.”
Does we have to comment? Perhaps no... However I would like to remember that "[o]rganizations compete not just for resources and customers, but for [...] institutional legitimacy" (DiMaggio & Powell, 1983, p.150). So, where is the core business of an Internet company? From the past 2 years we could say that the core business was moving to selling mobile devices itself or through Operational System license hidden on the OEM mobile device. Which kind of answer will be given to this Amazon's movement? Amazon's core business rests over the content not over device, nor license. But on digital books, magazines, news papers etc. Bezos is attaching the legitimacy of its competitors, at least in this niche market - content.
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