The world's largest online retailer,
) has recently announced the launch of its Appstore in China,
giving Chinese customers access to Amazon's broad selection of
Android mobile applications (apps).
The Appstore in China is focused on Android apps that users
can download or purchase for their Android handsets and tablets.
Amazon's store provides a vast selection of paid as well as free
apps and games. The new Amazon store offers both free and paid
) appstore, Google Play offers only free apps in China.
In the last few months, Amazon has been aggressively pursuing
opportunities in China. Recently, the company offered cloud
storage services and launched its Kindle e-book store. Chinese
customers can now access e-books using Android and iOS apps.
Amazon has been operating in China for some time but has
failed to increase its market share owing to stiff competition
from local players such as Alibaba Group Holdings Ltd. and
Beijing Jing dong Century Trading Co. Additionally, Amazon
competes with China's leading telecom carriers, such as China
Unicom (Hong Kong) Ltd. and China Telecom Corp., each of which
offer their own application stores.
We believe that despite the strong competition and various
regulatory hurdles in China, the new Appstore could help Amazon
attract new users due to its reputation and credibility. While
the company is not selling Kindle tablets in China yet, the
launch of the app store and the e-book store will provide
customers a wide selection of Kindle e-books and help Amazon tap
a promising market.
Amazon could capture a significant share of the Chinese market
over the next few years; which should enable the company to
generate an additional several billion dollars a year in
Amazon is one of the leading players in the extremely
fast-growing retail e-commerce market and its strength lies in
its huge scale of offerings, its broad reach and platform
approach. We believe that Amazon's strong balance sheet helps the
company to capitalize on investment opportunities and strategic
acquisitions, thereby improving growth visibility.
However, heavy investments in its Kindle tablet computers, new
warehouses and data centers may weigh on its near-term
Amazon currently retains a Zacks Rank #3 (Hold). Other stocks
that have been performing well and are worth considering include
Yahoo Inc. (
Barnes & Noble, Inc.
). While Yahoo carries a Zacks Rank #1 (Strong Buy), Facebook and
Barnes & Noble carry a Zacks Rank #2 (Buy).
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