The two Silicon Valley Giants, Google and Apple, were expected to take a world of hurting financially when Amazon evicted them from the top category in the Amazon marketplace.
Surprisingly, experts may not have anticipated just how large a financial blow Google and Apple were going to take, but it looks as if it could potentially reach millions.
As per information released via eCom Insights Panel by 1010data, Amazon’s market was a big seller of Chromecast product and AppleTV, and moreso than experts might first have recognized. In the prior year, as much as 60 percent of Apple TV sales were purchased via the Amazon marketplace. What’s more, when it came to Chromecast, the sales where huge through Amazon’s storefront and as high as 90 percent.
Essentially, while Apple TV was bringing in $42 million per year, over half of that was coming through the Amazon storefront to the tune of $25 million. Likewise, Google brings in about 67 million each year, with 7 million sold through Google and the remaining 60 million being purchased via Amazon’s storefront. The same study suggests there will soon be a growth in the set top devices via web-based sales. The revenue derived from the advertising of the latter devices is a big income for the manufacturers of the hardware – again, Google and Apple will take a financial blow and the two companies can end up losing as much as $100 million because of the Amazon.com eviction.
Amazon.com is so pervasive, it’s exclusion of Apple and Google are bound to have a powerful and negative impact. Of course, consumers can get the products via other outlets, but that will not stop the financial damage being inflicted by Amazon’s eviction. As per Samir Bhavnani, an Area Vice President for 1010data.com suggests that all three marketplaces work together as “frenemies.” They are interdependent on one another when driving customers to and from one of the three giants. The ousting by Amazon will be giving Amazon’s marketplace a greater edge over selling TVs rather than directing it to its two main competitors.