EXCLUSIVE Amazon Set To Target Phone Carriers With ‘Massive Range’.
Amazon is set to target Australia’s three main communication carriers, Telstra, Optus and Vodafone along with retailers which Amazon claims are selling “limited” ranges of branded smartphones.
According to sources Amazon who is set to launch in Australia in the 4th Quarter 2017, is set to offer Australian consumers a “massive new choice” of smartphones including products from their US tier one vendors Apple, HTC, Samsung, Sony, Huawei and Motorola.
Amazon will also range several smartphone brands that are not sold in Australia including a product called Blu, Fonus, Xgody as well as the explosive proof Owbb smartphone.
At this stage, it’s not known how Amazon will supply these products with some insiders claiming some stock will be shipped out of Asia. ChannelNews understands that Amazon also wants to become a carrier dealer so that they can sell connectivity to a network as well as a handset.
Mobile phone suppliers in Australian who are subsidiaries of major brands have been told that Amazon is set to offer “the biggest range of smartphones” ever offered in Australia and this could result in brands having to stock additional models.
A visit to the Amazon website lists several top selling smartphone brands, in what’s labelled today’s top sellers the brands listed include Samsung, Blu, Moto, Nokia and Alcatel.
One manufacturer said, “This is great news, as consumers at last will be able to get a great deal of choice, not just what carriers cherry pick for their stores. We are already a tier one vendor with Amazon in the US smartphone market and when Amazon does arrive carriers such as Optus, Telstra and Vodafone will be facing the potential of a major downturn in sales”.
The General Manager of another Amazon tier one brand who is currently selling smartphones in Australia said “Amazon has told us that they are looking to deliver three core pillars of engagement during the next 12 months. They want to be ‘price competitive’ ‘deliver a full range of products’ vs selected models while also delivering what they call ‘logistic efficiency’. They said.
According to multiple sources Amazon has already sourced warehousing in Australia that comes with a DA this is allowing them to build out their warehouse “quickly”.
According to several suppliers Amazon has also shown brands how they intend to target consumers in Australia.
“They are sitting on a vast amount of consumer data relating to Australia. They are not only using their Prime content offering to build profiles they are gathering information from consumers who are currently buying from Amazon already. They already have information on people’s attitude to shopping via Amazon, this is information that not one consumer electronics retailer in Australia is holding or has attempted to gather” said the marketing director of a global brand who sells on Amazon.
Bilal Javed, Market Analyst Mobile at IDC Australia said that the arrival of Amazon could have a major impact on the market. He said that it could also lead to both carriers and smartphone retailers having to “rethink their ranging”.
79% of the market in Australia is people who are on contracts with a carrier either via a retailer or direct with a carrier. The question is whether this consumer is going to move away from a $70 a month contract to buying a smartphone outright”.
“I believe that Amazon’s arrival could have an impact especially if they offer a bigger range than carriers. Price points will be critical if they are looking to shift consumers to buying from Amazon”.
“the brands that could do well are the midtier brands
Smartphone brands that are ranged by Amazon include: