Did Apple Cut A Special Deal With Amazon To Keep Its Product Pages Cleaner?
Portfolio Pulse from Rounak Jain
Apple Inc. (AAPL) has reportedly made a special arrangement with Amazon.com Inc. (AMZN) to ensure a cleaner presentation of its products on Amazon's website, with fewer ads for competing products displayed on Apple's product pages. This agreement, stemming from a 2018 deal allowing Apple to sell directly on Amazon, was highlighted in an internal email from Amazon's then-retail CEO, Jeff Wilke. The FTC is currently suing Amazon for using 'irrelevant junk ads' to increase ad revenue, a practice allegedly initiated by founder Jeff Bezos.
November 11, 2023 | 3:00 am
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NEUTRAL IMPACT
Amazon's agreement with Apple to provide a cleaner advertising experience on Apple product pages may affect Amazon's ad revenue from those pages but could also strengthen its relationship with Apple and attract more Apple customers.
While the deal with Apple might lead to a loss of ad revenue for Amazon on Apple product pages, the strengthened relationship with Apple and the potential increase in traffic from Apple customers could mitigate any negative impact. The overall effect on AMZN stock is likely to be neutral in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Apple's special deal with Amazon for cleaner product pages may contribute to a more favorable shopping experience and potentially higher sales for Apple products on Amazon.
The special arrangement with Amazon is likely to enhance the customer experience for Apple products, which could translate into higher sales. The positive impact on Apple's sales through Amazon could be reflected in the short-term performance of AAPL stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80