I wrote this article before the Amazon event yesterday in California.
Here are my edited comments from a thread on G+ regarding the Amazon event:
It isn't about the tablet, (or the apps!) it is about the services. Google came to this realization late in the game, and Bezos articulated it at the top of the event.
Also, Amazon sells devices cheap and makes up their money on the content. Bezos admitted it. They want to distribute content, not sell and support hardware.
Google didn't get this early on. They wanted to enable hardware, but they didn't see how the money-channel on content and app delivery would support hardware penetration and adoption. Amazon saw how Apple worked it, and did the same thing. +Google seems to finally be getting that.
Ultimately - we're going to end up with different "channels" for content distirbution, but unlike a TV, a different device will be necessary to access each channel. I think that will have to be addressed eventually, too. You need to have all consumers able to access all channels. Right now, that is a long-term liability for Apple, but it more of a two-way street between Amazon's Android fork and other Android forks. Amazon seems to understand that best.
Google should start releasing all of the Google experience as an add-on .apk that could be added to devices like Kindle-Fire and Nook. Navigation, Maps, the Play Store, Android Music... make it all available as widely as possible.
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Beyond that - does the new Kindle-Fire HD take the wind out of Google's sails with the Nexus 7 and expected Nexus 10? Does Amazon have better content? There is no doubt that Kindle offers an enhanced experience compared to Google Books. Does XRay offer a more compelling streaming video service than either Apple movies or Google Play Movies can offer?
I think these are the 3 big players right now, and on quality and scope of services is where they're going to differentiate from one another. Google gets it, but they're behind on this. Can they catch up?
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