Yes, dear Apple customer and faithful reader, I’m an Amazon Prime member. Why not? I buy a lot of stuff I probably don’t need or use as much as I should, but I prefer to pay the lowest price possible, and Amazon makes that happen. Sometimes.
Each year Amazon has a Prime Day; sort of a Black Friday but somewhere mid-summer; a time when Amazon sells all kinds of useless items at ridiculously low prices for Prime members; probably to get rid of crap that hasn’t sold well, and maybe to make non-Prime members a bit jealous. Amazon must be doing great. They have 80-million Prime members. So, how did Apple get rained on by Amazon? Read on.
Where’s The Umbrella?
Online journalism is full of argumentative writers who work diligently to gin up controversies where none exist. Here’s one by Brian Sozzi from TheStreet.
Sorry to rain on your parade Apple fanboys, but Amazon just totally stuck it to Tim Cook’s baby.
Really? How exactly can such a thing happen? Are Amazon’s financials now better than Apple? Does Amazon have a hot selling technology product that is doing so well they just told the world how many gazillion were sold?
Amazon said that it sold three times as many Echo devices worldwide midway through Prime Day.
OK, three times as many as what exactly? Last week’s Echo sales? Echo sales ever? See? No numbers. Again. Amazon claims to have sold a few million Echo devices, and a nearly half price sale on Prime Day should push more out the door, and Echo is the darling of technology writers who cannot count or who have cognitive disfunction, but I doubt if Apple worries much about a company that does not actually make much money and doesn’t really compete where Apple competes.
After all, pundits and guesstimators say Echo is a success after selling a few million devices, while Apple Watch– which probably sold an order of magnitude more– is a flop and a failure.
Go figure, right?
What this means to Apple is rather simple to understand: Amazon has managed to stuff more homes with Echos in front of Apple’s major HomePod launch.
And will continue until the much better and higher priced HomePod actually makes its way to an Apple Store to be sold. The argument is simple. Amazon cut the Echo’s price down to the value of dirt, sold millions of them, and that will prevent Apple’s HomePod from gaining any traction in the market because Amazon customers already have an Echo.
Hence, if you bought a discounted Echo why in the world would you want a HomePod, too?
I told you so.
Somehow I don’t think anybody at Apple worries much about what Amazon does because Apple actually makes money on the gadgets it sells, and the technology market doesn’t appear to be influenced in any way by anything Amazon sells. Except maybe cables.
In analyst jargon, Amazon has taken a bite out of Apple’s market share before its key new digital gadget has even hit the market.
Uh, say what? Amazon took a bite of Apple’s marketshare? OK, Amazon took a bite of zero because that’s the HomePod’s marketshare right now. Hence, said bite equals zero. That’s just stupid. Analyst jargon doesn’t make much sense sometimes.
Sorry, but it’s the truth.
See? There it is again. It may be truthful for Amazon’s Echo to take a bite out of a non-existent marketshare of a non-existent product. But it’s still stupid. Also stupid is the notion that anything Amazon does can rain on an Apple parade (whatever and wherever and whenever that is; but I’d like to see it).