Apartment Guide has launched an exclusive real estate rental app for Amazon’s (AMZN - Analyst Report) Kindle Fire HD.
Apartment Guide helps millions of people look for new homes or apartments. It advertises through Internet, mobile, social and print solutions. The company is focused on developing solutions for new home searchers that make use of the latest technologies. This has led it to develop apps for iPad, iPhone and Android devices.
The new app will provide larger photos and floor plans, advanced search capabilities, various on-going deals on apartments, among other things. Both Amazon and Apartment Guide are likely to benefit as a result.
Amazon entered the tablet market with the shipping of Kindle Fire in late 2011 when Apple Inc. (AAPL - Analyst Report) was already the major player. However, Amazon’s lower-priced Kindle Fire also witnessed very strong demand. Other players like Google Inc. (GOOG) and Microsoft Corp. (MSFT - Analyst Report) have also stepped in to grab a share of the pie.
According to International Data Corporation (IDC), Apple is still leading the market with a 39.6% share, having grown 65.3% from the first quarter of 2012, followed by Samsung with 17.9% share and Asustek with 5.5%. Amazon is in fourth position with a mere 3.7% market share.
Amazon is one of the leading players in the extremely fast-growing retail e-commerce market. Therefore, device sales are relatively less important for the company than the ecommerce sales it generates. The importance of its tablet lies in its ability to create a platform for Amazon to sell other products. Of course, the additional revenue doesn’t hurt either.
While the strong growth prospects are making the ecommerce market more competitive by the day, Amazon continues to maintain and even grow its share on the back of its consistent and reliable service. Amazon’s scale of offerings, its broad reach and platform approach are the keys to its success.
In the first quarter of fiscal 2013, Amazon reported revenues of $16.07 billion, down 24.4% sequentially but up 21.9% from the year-ago quarter. This was in line with the guidance for the quarter of $15.0 billion - 16.6 billion, although lower than our expectations. Year-over-year revenue growth was 24% excluding unfavorable currency impact.
Amazon has a Zacks Rank #3 (Hold).