Sunday, October 4, 2015

Why is Amazon Going to Stop Selling Chromecast and Apple TV?

“Why is Amazon Going to Stop Selling Chromecast and Apple TV?”
            Amazon has decided to take Apple TVs and Google Chromecasts off of their digital marketplace. When customers search for streaming video set-top boxes on Amazon, they will now only be able to choose Amazon’s Fire TV products. They will also be able to choose from preferred devices that also carry Amazon’s Prime Instant streaming service. As customers, Amazon told us that they are dropping Apple TV and Chromecast because they don’t “interact well”.
            From a company standpoint, this move that Amazon has made is worse for Google than it is Apple. Amazon followed Android’s open-source idea and is now forcing Google out after taking that idea. Open-source software is what made Android the most popular mobile operating system. Google announced the selling of 17 million Chromecast units as of May. This is a significant milestone for a software company, which is why this move by Amazon can hurt Google. It can cause tension between the companies, as that loyalty amongst them has now been broken.
            However, it is important to note that both Apple and Google have launched new products this month. This helps the situation that Amazon has put them in, as they are able to continue in the market with momentum in this ever-changing technologically advanced world we live in. Apple announced the new Apple TV and Google launched the new Chromecast this week. Google also introduced a device with the ability to make any speaker with a 3.5mm input Wi-Fi enabled. Both companies are continually advancing, which does not pose too many issues for the move Amazon chose to make.
            With these constant advancements, it does not look like this move by Amazon poses too many issues for Google and Apple. They can hold their own. Apple TV uses its own tvOS and carries name recognition, which is super important in the world of technology. Chromecast and Apple have both performed significantly well in their market share percentages as well. Apple held a 17 percent market share in 2014 despite not having released a new model in nearly 3 years. Similarly, Chromecast performed with a 19 percent share in mid 2013. These numbers show the growing advancements and continual recognition these companies have obtained.
            That being said, I do not think this has any short-term effects on the companies involved. Anyone that is a loyal enough customer to Apple or Chromecast will purchase the devices respectively. If anything, Google and Apple will now be resistant towards allowing Amazon Prime Instant Video app on their own streaming TV devices after the move Amazon has made.



  1. I think that Amazon’s decision to remove Apple TV and Google Chromecast from its e-commerce marketplace was a very strategic move to boost the sale of its own product. With the holiday season approaching, Amazon will likely be the leader in e-commerce. By removing Apple TV and Google Chromecast from its website, they are drastically limiting their competition and leaving consumers of Amazon to buy only Amazon’s fire TV, which from a business standpoint, is a very effective move. By doing this however, Amazon is “waging war” on Apple and Google, and from which Google is being hurt the most. With Amazon entering the TV market, ridding itself of competitors is a great way of putting its product out there and increasing its sales.

  2. I understand why Amazon made the decision to to remove Apple TV and Google Chrome. They did not want to promote other companies products, when they are trying to sell their own similar products. They do not want to offer their competition's products to their customers. They feel that if they take them off then their customers will buy their products which will greatly benefit Amazon. Also Amazon removing these products will not greatly affect Google and Apple. They are well know companies that are known for their great success in technology. Apple and Google loyal customers will continue to buy their products even if they are no longer offered on Amazon. This removal of Apple TV and Google Chromecast from Amazon's website will cause tension between these companies. However, Amazon felt that it was the best idea, so that their products would have a greater chance of being purchased, which in the long run will create more profits for Amazon.


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