Now, Amazon is creating a brick and mortar store in Seattle. There are some differences. Amazon plans on selling books which have a small margins. Apple sells Macbooks, iPods, and iPhones which have a large margin. Apple stores allow employees to teach new users how to use products. Will Amazon teach people how to read books?
I don’t think Amazon is trying to sell books to people. I think they are trying to sell e-readers to people. Amazon doesn’t make money selling books, but they do make a lot of money (in terms of margins) selling kindles and e-books. I started using a kindle 5+ years ago. It changed the way that I read. But, most people still read paper newspapers and paperbacks (myself included). The iPod gave me a 1,000 songs in my pocket but it still took 10 years to get rid of CDs, the kindle gave me 1,000 books in my hand, and will probably eliminate books. And, if Amazon and its Kindle can become the iPod of e-readers, then their store will be massively popular. But, it won’t be a store that sells hardcovers and paperbacks.
What do you think?