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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.

Apple
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)

Next Story

Apple Planning to Incorporate 3D ToF Sensor in Next Years’s iPhone Models

Next year, Apple is expected to launch four iPhone models with significant specification upgrades, media reports suggest

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

Apple is reportedly planning to incorporate Time of Flight (ToF) 3D sensing rear camera system in next year’s iPhone models.

Earlier there were rumours that a ToF sensor might be introduced as part of the 2019 line-up of iPhones but the sensor would just not be ready in time this year, news portal GSMArena reported on Thursday.

In addition, the Cupertino-based company is also planning to use Vertical Cavity Surface-Emitting Laser (VCSEL) in the cameras of the 2020 iPhones.

VCSEL is a key component of Apple’s TrueDepth camera that also powers features like Face ID, Animoji and Portrait mode selfies.

Smartphones
iPhones on display at an Apple store in Virginia, USA, April 4, 2016. VOA

Last year, famed Apple analyst Ming-Chi Kuo said that the ToF 3D rear cameras would make a debut with the 2020 iPads before making their way to the 2020 iPhones.

Next year, Apple is expected to launch four iPhone models with significant specification upgrades, media reports suggest.

Also Read: Google, Facebook Secretly Tracking Your Porn-viewing Habits

While three iPhones are expected to come with OLED screens and display sizes of 5.4-inch, 6.1-inch, and 6.7-inch, the devices would also have 5G connectivity. The fourth iPhone is expected to feature an iPhone 8-like design and come without 5G connectivity or OLED panel. (IANS)