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Apple Makes a Deal with Amazon, Which is Win-Win Game For Both

Amazon's volume sweet spot is in the much lower price tiers

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The logo of Amazon, online retailer is seen at the company logistics center in Lauwin-Planque, France. VOA

Aiming to boost sales in the wake of weaker-than-expected demand for new iPhone models, Apple has sealed a deal with retail giant Amazon to sell its range of products which is a win-win game for both the tech titans, market research firm Counterpoint Research has said.

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 by January 2019, Maurice Klaehne, Research Analyst, Counterpoint Research, wrote in a post on Sunday.

“Apple is attempting to regain control over its iPhone sales on one of the biggest online channels. Third party vendors were selling on Amazon and it was near impossible for Apple to control the supply chain, assure quality control, price,” Klaehne added.

The move is likely to affect the third party vendors who sell new and refurbished Apple products on the e-commerce platform.

“Not only will this affect many smaller businesses in terms of iPhone sales, their service offerings will also be affected. The refurbished and repair market will also take a hit as companies will either have to move off the Amazon platform or go through the authorisation process,” noted Klaehne.

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Amazon, Apple deal win-win game for both: Counterpoint.

The retail major would gain with the agreement.

Amazon does not compete with its own hardware or bundling opportunities directly with phones, wearables or even directly with tablets; Amazon’s Kindle Fire range is aimed at a different segment than the iPad.

The agreement gives Amazon sales and analytics on a segment of the phone market it has hitherto had limited information on-the premium/flagship market, according to Counterpoint.

Also Read- Samsung Plans To Launch its First Foldable Smartphone in 2019

Amazon’s volume sweet spot is in the much lower price tiers.

Counterpoint estimated the weighted average selling price (ASP) of phones selling on Amazon to be under $250. (IANS)

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Apple to Release 5G-equipped iPhone in 2020

In addition to Kuo’s predictions, the iPhone maker is also working on improving the cameras on its 2019 phone line-up

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The Apple logo is shown outside the company's Worldwide Developers Conference in San Francisco, California. VOA

Apple is expected to release a 5G-equipped iPhone in 2020 powered by chipsets from Qualcomm and Samsung that would take the total iPhone shipments to 195-200 million units in two years, according to Apple expert and predictor Ming-Chi Kuo.

Earlier in April, Apple and Qualcomm settled their long-drawn legal war over patents and licensing at an undisclosed amount and Apple agreed to buy chips from Qualcomm again as part of the settlement, CNBC reported on Monday.

“We expect Apple will likely adopt 5G baseband chips made by Qualcomm (focus on mmWave markets) and Samsung (focus on Sub-6GHz markets) for lowering supply risk, reducing costs and having better bargaining power,” the report quoted the TF International Securities analyst Kuo as saying.

According to him, the introduction of a 5G-enabled iPhone could create a wave of upgrades and purchases, especially for high-end models.

So far, 2015 has been Apple’s best year in terms of iPhone shipments when the company sold around 231 million smartphones. After facing a drop in sales, the company, in 2018, said it sold over 217 million iPhones.

Apple, Campus, China
A customer is entering the Apple store in Fairfax, Virginia. VOA

“We are positive on the high-end iPhone models’ replacement demand in the second half of 2020 thanks to the 5G iPhone. We expect the total iPhone shipment will respectively reach 188-192 million and 195-200 million units in 2019 and 2020,” Kuo said.

Apple is also working on redesigning the printed circuit boards to be included in 2019 iPhone models using a new kind of material to clear out space for a bigger battery, he added.

Also Read- Twitter’s New Tool Will Help Reporting Misleading Information About Voting

In addition to Kuo’s predictions, the iPhone maker is also working on improving the cameras on its 2019 phone line-up.

While the front camera would be upgraded from 7MP to 12MP, the triple-camera set-up would be implemented in the upcoming 6.5-inch and 5.8-inch OLED iPhones, along with a new super-wide 12MP lens. (IANS)