Can the iPhone 6 Beat Amazon’s Kindle Fire?

Steve Jobs on an iPhone

The war is on — which smartphone will win? Or is Apple really trying to fight Amazon’s Kindle Fire? It’s fun to watch two giant tech companies trying to out-do each other by creating even more exciting new gadgets. But at some point you have to ask: which fight are we really watching? Did Apple just release a new phone, or a new tablet?!

But my response would be that it doesn’t matter. I always think of the long-term war between Apple and Microsoft. Actually, I remember the way it was acted out in the movie “Pirates of Silicon Valley”. It ends with Steve Jobs confronting Bill Gates over Microsoft’s plans to take over the market for personal computers. Microsoft succeeded, but I like to think that Steve Jobs personally calculated the strategy that would one day help Apple reclaim the lead.

The storyline looks like this. Steve Jobs knows that computers will get smaller and smaller, and eventually “computing” will be mostly practiced on tiny devices that we’d hold in our hands. So back in 2001, Apple releases their first iPod, and quickly carves out a niche in “fresh territory”. The iPod gets better and better, and within 6 years, Apple adds the ability to make phone calls to their handheld devices — and also the ability to run apps. And what was the iPad, really, but a big iPhone, for running apps on a giant screen?

There’s debate now about whether you can really replace a personal computer with a handheld device, but it’s undeniable that people love owning a tablet. Amazon, of course, has been selling Kindles for the last 7 years, and they introduced their own line of multimedia tablets in 2011. But the Kindle Fire may just have been a defensive move by Amazon — to make sure Apple didn’t lure away everyone who wanted to read ebooks on a handheld device.

And then Amazon launched an offensive move — releasing a smartphone of their own. The Fire Phone was even discounted massively this week, from $199 apiece to just 99 cents (with a two-year service contract). But I’m still wondering if we’re missing the real battle that Amazon is fighting here. The Fire Phone comes with a “Firefly” feature which makes it easy to instantly purchase items (using your Amazon account to automatically handle all the billing). Maybe Amazon isn’t worried about losing customer’s who’d buy ebooks, digital readers, or even handheld tablets.

Maybe Amazon’s worried about losing ground in the war for all commerce — the ability to handle every payment that gets made on a mobile device.

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