Apple and Alibaba: A dream matchup and potential nightmare for Amazon?

“Will Apple Inc. and Alibaba Group Holding Ltd. — two of the world’s largest companies — come together for a game-changing partnership?” Louis Bedigian asks for Benzinga. “‘They both have something to seek out,’ Wedbush analyst Gil Luria told Benzinga. ‘Apple wants to sell a lot of iPhones in China, and Alibaba wants recognition and access to the West. They make very complementary partners.'”

“PTT Research analyst Mark Gomes thinks this partnership ‘makes perfect sense.’ He told Benzinga that while Amazon.com, Inc. has the complete e-commerce infrastructure set up in the United States, Alibaba has the infrastructure on the other side of the world,” Bedigian reports. “‘Those are the infrastructure players,’ said Gomes. ‘Amazon [has] very unsuccessfully tried to get into the connectivity side with the Kindle Fire — they’re going to need to pivot. They don’t have that kind of connection to the user that they need unless the user goes to Amazon. With Alibaba coming to town it’s going to be prohibitively difficult for them.’ Gomes added that while Alibaba has a lot going for it, it is missing that element of connectivity. Apple has that covered but needs access to new customers, which Alibaba could provide.”

Read more in the full article here.

Related articles:
Apple CEO Tim Cook talks Apple Watch, Apple Pay, and Alibaba (with video) – October 28, 2014
Apple-Alibaba partnership could transform electronic payments – October 28, 2014
In one week, Apple Pay already No. 1; used more than all other mobile payment systems combined – October 28, 2014
Alibaba’s Jack Ma says open to working with Apple on Apple Pay – October 28, 2014
Tim Cook blasts CVS, Rite Aid over Apple Pay blockade: ‘You only are relevant if your customers love you’ – October 28, 2014
Seeking personal data, Walmart, Best Buy, and others won’t let shoppers enjoy Apple Pay privacy – October 27, 2014
Boycott CVS and Rite Aid – October 27, 2014
Bad business: CVS and Rite Aid antagonize their most well-heeled customers by blocking Apple Pay – October 27, 2014

12 Comments

  1. A knock out blow just waiting in the wings. If Amazon can’t make money now it’s future looks bleak indeed. U.S. Business needs to understand that it isn’t automatically the Elephant in the room any longer. The QR parochial joke suggests they Havent got that message yet.

  2. danger will robinson…..

    i think before everyone gets all excited about ali baba, leave us remember it comes from china. china is not our friend – nor anyones – they were the middle kingdom once and they plan on being there again. no matter what it takes or how they manage to attain it.

    we already owe them way too much money and letting them deeper into the american economy plays directly into their hands.

    the founder may be american educated, and presents a friendly face but no matter how good a person he may be be, he lives in china and that government can call the shots on pretty much anything, especially how a multi billion dollar valued business does business.

    beware the camels nose, my friend…

    i would steer clear.

  3. I would love to see Amazon succeed. Right now I think Bezos is SO narcissistic that he might do some significant damage to the company because he’s unable to look honestly at himself and say that not all his ideas are good ones. In fact, many of his stupid ideas have cost Amazon a lot of money and achieved nothing much except giving MDN readers something to laugh at.

  4. i’m kind of lost since i don’t know much about alibaba. can you buy items on their site like amazon and have them shipped to you, or are they just for business owners and sell stuff in bulk?

    1. alibaba is how importers find cheap goods from thousands of factories in China looking to sell in bulk. They love 1st time buyers because they can send lower quality goods with little repercussions. They have a good laugh after shipping the products out there foreign buyers

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.