Amazon and Apple: frenemies unite to pursue growth
Tech titans Amazon and Apple (both of whom saw their market caps extend beyond the trillion-dollar mark earlier this year) haven’t always been the best of friends. In 2015, Amazon stopped selling Apple’s TV media streaming device, because it wasn’t easily compatible with Amazon Video. And in 2016, Apple filed a lawsuit against Amazon, claiming that it was selling knock-off Apple merchandise. Despite this turbulent history, the two companies have decided to bury the hatchet and strike a new deal, which could spur growth for them both.
Despite a rocky year to date for the tech sector, Amazon’s share price remains 41% up in 2018
Source: Yahoo Finance
Last Friday, Amazon announced that it would start selling the most-recent iPhone, iPad, Mac, Apple Watch and Apple TV models, as well as branded accessories and headphones from Beats, an Apple subsidiary company. While Apple’s last earnings release demonstrated that it was struggling to ship out more iPhones – still the overwhelming contributor to Apple’s total revenue – its products remain massive sellers. Whether Apple can wring some extra sales from Amazon’s powerful online retail platform – and whether Amazon can benefit from those sales in kind – remains to be seen.
In a statement, Amazon said: “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. We look forward to expanding our assortment of Apple and Beats products globally.”
Amazon won’t be selling Apple’s HomePod, a competitor to its own wireless speaker the Echo.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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