Amazon's Wireless Play with Apple

Deal Underlines Amazon's Crucial Role As an Online Retail Channel

Last week, Amazon reported that it has signed an agreement with Apple that will greatly expand the selection of Apple products on its e-commerce sites in the US, the UK, France, Germany, Italy, Spain, Japan and India. The deal will allow Amazon to sell Apple's latest devices including the new iPad Pro, iPhone XR, iPhone XS, iPhone XS Max and Watch Series 4, as well as its line of Beats headphones.

Although many Apple products have been available on Amazon sites for some time, most of them have been sold by resellers, with pricing and conditions varying widely. Under the new deal, Amazon will limit resellers of Apple and Beats products to those authorized by Apple. Independent sellers will have their listings removed after 4 January 2019, but they can apply for permission through Apple.

Amazon and Apple have been fierce rivals for years, but have now found reasons and ways to cooperate. The agreement between the two giants is a sign that they're on better terms than previously. In 2015, Amazon removed the Apple TV set-top box from its site to promote its rival device Fire TV, and also for not supporting Amazon Prime Video. It wasn't until earlier in 2018 that the Apple TV made a return to the site. Amazon can be protective of its ecosystem product, and this is likely to be the reason why it won't sell Apple's HomePod speaker, which competes with its Echo range of devices and Alexa ecosystem.

In most markets, Apple sells its cellular products through operator channels, its own retail stores or third-party retail stores where it has a high degree of control on pricing and the way products are displayed. It's very rare that an operator or retailer will dare to deviate from Apple's strict pricing and retailing policies.

The additional exposure will help Apple reach more consumers through one of the world's best-known online shopping channels, where a growing number of customers have been buying unlocked Android smartphones and tablets. Indeed, our recent survey of consumers in the UK and France showed that Amazon is becoming an increasingly important destination for customers buying mobile phones (see Cracking the Code).

The announcement didn't mention when the wider selection of Apple products would be coming to Amazon, but we expect them to arrive on Amazon's US site before Black Friday. That's just a week away.

This entry was posted on November 15th, 2018 and is filed under Devices. You can follow any responses to this entry through the RSS 2.0 feed or you can leave a response.

Posted By Raghu Gopal On November 15th, 2018

(There are no comments yet)
Leave a Comment

Hot News

Team Tweets

CCS Insight
The FCC reports that 25 million Americans lack access to a home broadband service. Mobile access will be crucial.
Follow CCS Insight
Shaun Collins
The @NetflixUK algorithms are a little off today. Think this should be for @GarethTurpinO2. Enjoy!
Follow Shaun
Ben Wood
RT @geoffblaber: Subtle change in MediaTek's messaging on 5G - now saying it could skip its M70 discrete modem and go straight to a fully i…
Follow Ben
Martin Garner
@Intel key announcements. Foveros 3D stacking of components within a chip is an exciting breakthrough. Lots of bene…
Follow Martin
Geoff Blaber
Subtle change in MediaTek's messaging on 5G - now saying it could skip its M70 discrete modem and go straight to a…
Follow Geoff
Nicholas McQuire
Superb blog post from colleague @aashenden on the next wave in business #collaboration. #DigitalTransformation…
Follow Nicholas
Angela Ashenden
Trello adds IFTTT-style automation with Butler buy >> nice article by @thematthewf with my comments:…
Follow Angela
George Jijiashvili
RT @MarinaKoytcheva: Great job opportunity for a quantitative analyst: @CCSInsight is looking for a smart person to join our market forecas…
Follow George
Katie Taylor
RT @EricTopol: The controversial birth of #CRISPR genome edited twin babies @AP, by @MMarchioneAP
Follow Katie

Recent Blog Posts

Blog Post
The Rural Digital Divide Mobile Internet Crucial to Bridging the US Connectivity Gap ... Read more
Blog Post
Wind River Carves out Its Position As an Independent Firm What's New with the IoT Supplier after Parting from Intel? ... Read more
Blog Post
The Yandex Phone Russian Search Engine Giant Debuts Its First Smartphone Las... Read more
More blog

Latest Company News

Blog Post
Virtual Reality Device Market Declines in 2018 But Outlook Remains Positive Research firm CCS Insight forecasts 8 million virtual realit... Read more
More news