This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple Vs. Amazon: Don't Call It a Price War

NEW YORK ( TheStreet) -- Investors annoy me (not you, but other ones).

After Apple (YHOO - Get Report) rolled out new products, most notably the 13-inch Macbook Pro with Retina Display and new iPad mini, its stock dove (again), testing recent lows and settling around $615 during Tuesday's after-hours session.

I went on CNBC a couple of weeks ago and predicted exactly how Apple would approach iPad mini.

Apple did not give us a cheap knockoff; instead, it introduced a premium-priced smaller version of the iPad that outclasses everything in the same ...

But wait, they're not even in the same category.

Not Google's (GOOG - Get Report) Nexus 7 or's (AMZN - Get Report) Kindle Fire tablet.

In the video, Mashable's Lance Ulanoff rolled with assumptions that he -- and his sympathizers -- will probably still claim true today.

Primarily, the "sweet spot" for a 7-inch, budget tablet is the $199 price point. And Apple will lose if it prices iPad mini higher.

There's not a nicer way to say it -- that's crap.

I was off by $20. While I anticipated a $349 iPad mini, Apple enters the market with the 16GB WiFi model at $329, followed by 32 and 64GB WiFi versions at $429 and $529, respectively.

It did not sell itself out and blindly join the $199 hackfest. It produced an entirely different product, particularly from quality of construction and design standpoints.

As Apple's near-comical side-by-side comparison with the Nexus 7 shows, that tablet was thrown together with plastic and scant attention to detail.

Google made a lame attempt to compete.

And, because Jeff Bezos has a clue, Amazon set foot in the space only to further its e-commerce ecosystem. Nothing less, nothing more. Kindle Fire is little more than an Amazon credit card that just so happens to do a serviceable job playing music, streaming video and running apps.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 -0.19%
AMZN $673.26 -0.31%
GOOG $750.26 0.28%
YHOO $32.94 -0.66%
FB $105.45 0.04%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs