Unavailable to Canadian Residents, the Kindle Fire Hopes to Expand
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Amazon Inc.‘s new Kindle Fire stirs a commotion among analysts. The new Kindle Fire, priced at $199, sells significantly lower than Apple’s iPad. Some analysts have stated that the Kindle Fire is the “most viable competitor to Apple Inc.’s iPad”. The Fire is only available to U.S. residents because the majority of Amazon’s online services are unavailable in Canada.
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Canadian licensing costs are higher in Canada than the US. and the UK, which drives companies to the more cost-effective markets in the US. Canada is a “secondary or tertiary market” for many companies due to the high costs tied to product licensing. This causes the barriers to entry to be high. In order to overcome these obstacles, expanding into Canada would increase profitability for the company in the tablet market.
The rivalry between Apple and Amazon has begun.
Works Cited:
Braga, Matthew. “Kindle’s Fire Will Be Dampened in Canada by Lack of Streaming Services.” Home – The Globe and Mail. 30 Sept. 2011. Web. 2 Nov. 2011. <http://www.theglobeandmail.com/news/technology/tech-news/kindles-fire-will-be-dampened-in-canada-by-lack-of-streaming-services/article2186377/>.