Apple Inc. (AAPL) Helps Intel Corporation (INTC) But Threatens Amazon.com, Inc. (AMZN) at WWDC

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With sliding sales, price would no longer serve as a major advantage. Initially, Amazon lost money by giving discounts on e-books, but recovered that by selling Kindle hardware at higher prices. But now, Kindle is selling so cheap that Amazon has lost its income cushion from hardware.

Amazon has only one advantage, that of price, but discounts aren’t available on every e-book title. As the company is already selling e-books and Kindle is at a loss, Amazon is unlikely to hold on its pricing advantage for long. So, Apple can use its might and vast user base to sell e-books, giving tough competition to Amazon.

Colin Tweel has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, and Intel. The Motley Fool owns shares of Amazon.com, Apple, and Intel.

The article Apple Helps Intel but Threatens Amazon at WWDC originally appeared on Fool.com and is written by Colin Tweel.

Colin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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