CE Retailers Facing Threat, From Apple Amazon Deal
Australian retailers who sell Apple products are facing a real threat after Amazon cut a deal with Apple to range their PC’s and iPhones online worldwide including Australia. In the past the two US giants have sued each other.
Retailers such as Big W, Harvey Norman and JB Hi Fi generate foot traffic to their stores by ranging Apple products now they are going to have to compete with Amazon who is set to use Apple products to drive traffic online.
According to sources Amazon is looking to use the Apple range of products with the exception of the Apple HomePod which competes with the Amazon Echo to drive traffic to their Australian site by offering “competitive” prices.
it would begin selling the most-recent iPhone, iPad, Mac computer, Apple Watch and Apple TV models on its website, along with branded accessories and headphones from Apple’s Beats subsidiary within days.
Previously, Amazon sold only older model iPhones now they are set to sell the new iPhone XS and iPhone XS Max and along with the new Apple iPad and MacBooks.
“Amazon is constantly working to enhance the customer experience, and one of the ways we do this is by increasing selection of the products we know customers want,” Amazon said.
The move comes as iPhone sales slow due in part to the premium price that Apple is attaching to their devices.
With the iPhone generating close to 60 percent of quarterly sales and tying customers to other services such as Apple’s music and video streaming, Apple has suddenly become concerned resulting in the deal with Amazon who is believed to be close to launching a major advertising campaign promoting the “competitive” pricing of Apple products on their site.
The two tech giants who have clashed in the past are now “close buddies” according to Amazon sources.
In 2016, Apple filed a lawsuit against Amazon alleging that the online retailer was selling counterfeit Apple products on its web store.
In 2015 Amazon stopped selling the Apple TV media-streaming device that wasn’t easily compatible with the e-commerce giant’s video service, an example of Amazon using its clout as the world’s biggest online retailer to promote products that helped push its own streaming content.
Now they are set to use Apple products to drive sales for both themselves and Apple.