Indo-Asian News ServiceNov 19, 2018 18:00 PM IST
In order to boost sales in the wake of weaker-than-expected demand for new iPhone models, Apple has struck a deal with retail giant Amazon. Sell your range of products. What a win-win game for both tech titans, said market research firm Counterpoint Research.
According to Counterpoint, the move would allow the Cupertino-based giant to better manage pricing, warranties and the overall customer experience.
Third-party vendors who are selling on Amazon’s platform will be phased out starting in January 2019, Maurice Klaehne, research analyst, Counterpoint Research, wrote in a post Sunday.
“Apple is trying to regain control over its iPhone sales in one of the largest online channels. Third-party sellers were selling on Amazon and it was almost impossible for Apple to control the supply chain, ensure quality control, price.” Klaehne added.
The move is likely to affect third-party vendors selling new and refurbished Apple products on the e-commerce platform.
“This will not only affect many smaller companies in terms of iPhone sales, but their service offerings will also be affected. The repair and refurbishment market will also suffer as companies will have to leave the Amazon platform or go through the authorization process, “Klaehne noted.
The largest retailer would win from the deal.
Amazon does not compete for its own hardware or bundling opportunities directly with phones, handheld devices, or even directly with tablets; Amazon’s Kindle Fire range is aimed at a different segment than the iPad.
The deal gives Amazon sales and analysis in a segment of the telephony market that has so far had limited information on the premium / flagship market, according to Counterpoint.
Amazon’s volume sweet spot is at the much lower price levels.
Counterpoint estimated that the weighted average selling price (ASP) of phones sold on Amazon is less than $ 250.