According to an article recently published on FT, the American online retail giant, Amazon.com, Inc. , is now selling smartphones with a discount as large as 50%. The discount is only available to consumers who agree to receive personalized ads on the smartphone’s lock screen. The displayed ads will be from Amazon & other third party advertisers. The firm announced this new deal on Wednesday (29/06/2016.)
The Motorola Moto G typically has a retail price (RRP) of $199.99. If the buyer agrees to allow Amazon.com, Inc to display personalized ads on the smartphone, they can purchase it for a discounted price ($149.99.)
The FT article went on to explain how the phones could generate revenue for the online retailer in other ways, reading “The devices also come with Amazon’s apps pre-installed on the homescreen and allow users to access the company’s offerings such as music and video streaming through a single sign-on.”
Change of Strategy at Amazon.com, Inc.
It seems that Amazon.com, Inc. is trying to gain market share & generate more revenue by making small changes. This new offer could also lead to repeat purchases from customers, as some of the ads displayed on the phones will be advertising the firm’s own products.
An analyst at IHS Technology, Ian Fogg, said “This is a change of tack for Amazon — working with other companies on their smartphones to get Amazon presence on the device. The initial impact of this is going to be limited, but as a strategic first step it has very significant, wide-ranging implications.”
Amazon.com, Inc. Enters the Private-Label Perishable Food Market
Amazon has launched its new coffee label, called Happy Belly. The launch of happy represents the firm’s entry into the private-label perishable food market. Amazon is a well-diversified business, active in a range of different sectors. The company has continued to enter new sectors in search of profit & risk reduction. In February 2016, it was reported that the firm had entered the fashion industry, launching 7 of its own fashion brands.
Last month, reports emerged that the firm would be launching 4 brands of perishable foods, cleaning supplies & diapers. The new brands are exclusively available to members of the Amazon Prime service.
As the markets closed on the 29/06/2016, Amazon.com, Inc.’s stock was down by 1.08%, trading at $715.60 per share, giving the firm a market capitalization of $337.64 billion.