Re:My Developer friends are upset about Apple vs Amazon
by JumpCrisscross on Sunday February 03, 2013 @04:41PM
(#5161287)
Three trends: (1) internationalisation driving revenue growth, (2) digitisation driving margin expansion, and, (3) demography driving changing attitudes towards internet shopping.
(1) 2/5 of Amazon's revenues come from outside the U.S. Amazon has (a) room to grow, and, (b) a foothold to ride rising developing world consumer spending.
(2) Amazon raised its U.S. margins 2 percentage points last quarter YoY. The expectation is that they can export this margin expansion, thought to be driven by digital services.
(3) Proclivity to shop online appears to be, and I say this tentatively, inversely related to age. As people born after 19xy make up a greater fraction of the population online shopping will gain a share of retail activity. Amazon is solidly positioned for this. Further, as the present generation of shoppers gets older and wealthier, its retail, read: online, read: Amazon, spending will increase, too.
(1) 2/5 of Amazon's revenues come from outside the U.S. Amazon has (a) room to grow, and, (b) a foothold to ride rising developing world consumer spending.
(2) Amazon raised its U.S. margins 2 percentage points last quarter YoY. The expectation is that they can export this margin expansion, thought to be driven by digital services.
(3) Proclivity to shop online appears to be, and I say this tentatively, inversely related to age. As people born after 19xy make up a greater fraction of the population online shopping will gain a share of retail activity. Amazon is solidly positioned for this. Further, as the present generation of shoppers gets older and wealthier, its retail, read: online, read: Amazon, spending will increase, too.
Disclaimer: I do not have a position in AMZN.