The New Big 3: Amazon, Apple and Samsung
Fast forward to 2012 and the Big 3 are now Amazon.com, Apple and Samsung. Instead of 4000 pound hunks of materials with engines and thousands of parts provided by hundreds of suppliers, the new economy is focused in the cloud. There is no longer any need for the 90,000 Interstate miles. Heck, there is no need for cars if you are talking about the economy. And if you really think about, there is no need for stores, malls, parking lots and everything else built in the 20th century.
It’s kind of scary.
Best Buy and Target both recently announced they are matching online prices. Walmart recently announced same day delivery. And whom do they all compete with? Amazon.com.
Barron’s magazine recently featured the death of the PC on the cover and even featured a gravestone. Who needs PC’s anymore? Remember the Big 3 during the 1980’s to 2000? It was the Wintel: Microsoft, Intel and Dell. When was the last Dell computer you bought? Now everyone uses their smartphones or tablets to go online, text, access Facebook, make reservations, play games and so forth. And whom does those companies compete with? Apple and Samsung.
It’s more than scary.
ABC Warehouse, a Michigan based retailer of electronics and appliances recently started selling mattresses. Really? What do mattresses have to do with TV’s? Oh, you watch TV in bed so why not offer mattresses! Fact is, they have these huge stores and need something to put in them that Amazon.com can’t ship so easily. Mattresses appear to be the cure. But for how long?
All Apple devices connect to the iCloud. Amazon makes more money in the cloud business than selling goods out of its distribution centers. Samsung uses Google’s Android technology for FREE to power up its phones and also utilizes the cloud for storage. Remember thumb drives? Remember discs? Remember battery back-ups? Yikes, I still remember CD’s, DVD’s, cassettes and VHS’s.
It’s Halloween all the time.
What’s left that the Big 3 can’t touch? Food and services. But wait, Amazon.com is testing same day delivery of food in Seattle. But wait, SIRI is now accepting reservations and carry-out orders at your favorite restaurants. However, they can’t cook the food or provide an experience, yet. Services are also safe such as medical, health, beauty, dry cleaning, auto repair and so forth. Apparently those 20th century things have no interest to the Big 3 at this time. Eventually though, time will tell.
I’m happy to be in the beauty business.
Happy Wednesday!
P.S. MSU and the Detroit Lions. Really? At least we have the TIGERS! Go TIGERS!