Earlier this month, Amazon and Apple reached an accord that entrenched both brands’ dominance in their respective industries. Apple will be officially listing its products on Amazon’s marketplace in the US, UK, France, Germany, Italy, Spain, Japan, and India: the world’s most recognizable luxury brand on the world’s most accessible e-tail platform.
The deal will broaden Apple’s visibility on the e-tailer. Before the deal, the brand scored a mere 2% visibility for unbranded terms on Amazon, according to Gartner L2’s Consumer Electronics US: E-Tailer Strategies report. Of that 2%, most results were accessories and refurbished phones sold by third-party vendors. The partnership could help Apple prevent those third-party dealers from taking advantage of its brand name on Amazon, as well as eliminating counterfeit items.
In terms of visibility, Apple will further benefit from being the newest member of Amazon’s massive marketing engine as it continues to pick up steam into the holiday season. Gartner L2’s report finds that Samsung appears in 5% and Lenovo appears in 4% of Amazon Shopping ads. Inclusion in this type of ad collateral offers potentially free exposure for Apple.
The report also finds that Apple already shows up in 5% of Amazon email marketing subject lines featuring a consumer electronics brand tracked by L2. With the new partnership, Apple’s inclusion in Amazon’s marketing content will only rise.
The partnership demonstrates Amazon’s recognition that its strategy of imitating products under a private label was a failure with regards to the smartphone market. The iPhone is inimitable and Amazon’s Fire phone was a demonstration in the market’s inability to trump Apple.
However, Amazon did not fully concede to Apple. The e-tail giant will not be offering the HomePod, as it competes directly with Amazon’s Echo product line with Alexa-enabled speakers.