Strategic Finance
Amazon.com, Inc: Upcoming tablet to maintain superior growth momentum |
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| Strategic Finance | |
| Written by Roberta Murray | |
| Thursday, 08 September 2011 | |
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An analyst note from Jefferies says the Amazon tablet should be launched in Oct / Nov.
Amazon.com, Inc (NASDAQ:AMZN) is expected to see 4Q/FY12 sales boosted with the launch of the Amazon tablet which analysts at Jefferies have pencilled in for release in October or November. An analyst note from Jefferies released today says: "The widely anticipated launch of a tablet device by Amazon in the Oct/Nov. time frame should provide a boost to 4Q/FY12 sales and yield considerable synergies with the core marketplace and digital services overtime. This should further solidify AMZN's position as the ecommerce category leader." It is believed that a proprietary tablet would allow Amazon to widen its competitive moat, improve consumer experience and benefit from the rapid growth in mobile usage. Amazon had debuted an app marketplace for Android earlier this year, which should allow it to offer a rich, customised experience to its Tablet users. "We believe that Amazon’s tablet will feature seamless integration with the company’s e-commerce and digital services, enabling users to order goods from the Marketplace, purchase digital movies/music/e-books, etc," say Jefferies. Additionally, Prime could be bundled as a free 1-year subscription for the Tablet buyers, which will not only boost the customer value proposition ($79 value + free movie streaming service) but also help drive the core ecommerce from higher purchase frequency.
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