Apple Vs Amazon(Corporate Showdown of the Decade)
We are set to close the current week with income generating engines grunting at breakneck speed as the two Tech bigwigs top rivals ran bumper to bumper, to cross the checkered line and claim the trophy for $1 Trillion in market capitalization.
On the last weekday, Apple Inc. assessed to stand at a $941 billion mark, considered the top grossing company for tech-supplies. According to the official income statement released at the 31st of July, at the end of three-quarter financial year, the smartphone wiz maybe able to hit this milestone with only a 6 percent increase in stock prices. Not too many paces behind is Amazon catching on quickly with a $880 billion mark. With a mere 13 percent increase, it is estimated to have better propensity to make the cut.
The race is ragging fiercer and fiercer and even a millimeter could seal the deal for first spot and the runner up, depending upon the market favors and trends.
As Apple is set to launch the highly anticipated and exorbitant Iphone X, its marketers are planning to break their own record of the 41 million Iphones sold in the preceding quarter. However the last portion of tri-quarter had been a declining trend for sales of Iphone conventionally. Since the consumers go in hibernation to wait for the launch of latest Iphones.
On the brighter side investors are predicting an uptake in various byproducts of Apple like in app sales, iCloud storage upgrades, video stream sells and Ipod music subscriptions. These service solutions might end up giving Apple the winning push.
Meanwhile after its second quarter close Amazon, manages to maintain a Prime day listing with a $4 billion mark in sales alone, in spite of the techno-glitch mishap. Should the states telly with its financial advisers reports, investor might be looking at Amazon as the next $1 Trillion champ.
In the face of Apple’s service facilities, Amazon is introducing to its recently developed ad-agency, budding rapidly under the flag of Amazon Web services. This particular sub-division of Amazon ventures has been showing a fast growth rate and is said to be able to complete the final leap for Amazon.
The bright investors of Amazon, having banked a 55 percent profit margin this anum, might as well expect to keep their loyalties with it, intact until a $2 trillion benchmark. Among other Wall Street wolves Felix Salmon approves this prediction, as he writes in Wire about how Amazon has got small capital bounded with several businesses and subtly signaling the possibility for further growth.
Prime day and other promotional event not only play a monumental role in sky-rocketing sales figures but have a potential to multiply the new clients by twice or thrice. Amazon had been wisely investing in facilitation centers to maintain the logistics cost and build a strong customer ambiance. There is also a positive hike with the sales of FMCG and perishable goods.
Not resting on luck alone, Apple is planning to introduce a branded trio of current Iphones to counter the saturation of market and invite a new customer base through new price tags in markets like India. The big mac consumers have a lot to look forward to with the upcoming release of Augmented Reality Gears and Video streaming feature, both of which are expected to mimic the success stories of YouTube and Netflix.
Even so, this $1 Trillion milestone had managed to create good psychological and financial sensibilities for Amazon and Apple by way of Media sensationalism. On a practical note it is of no immediate significance if a corporation crosses it later than the other. Nevertheless these tech companies are starting to line up with big fuel and big pharma, lest they manage to survive a 'tug ‘o’ stock' wars with the economy behemoth namely China.
Frankly at this point Amazon and Apple can be seen wrapped in mutual respect and be prepared to courtesy the other for the inevitable win.
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