Amazon is buying Texas Instruments’ chip division. With
Amazon’s recent foray into the device field with the Kindle, the ability to
more closely control its suppliers is crucial. Now they own their chip
supplier. They’re following the Apple model, which should result in a more
integrated supply chain, faster time to market and more obfuscated product
development to competitors. All good things.
Amazon is also providing commercial lending to small
businesses. Some may lament Amazon departing from its core competency to dabble
in finance, but the positives far outweigh the negatives. Amazon already has
vast knowledge of these small businesses since they sell their products through
Amazon’s platform. Additionally, Amazon has a built in way of recouping their loans,
much akin to garnishing of workers’ wages. As long as they have the free cash
flow, this move should further add to Amazon’s profitability.
Amazon is adding 50,000 retail jobs for the holiday season.
This speaks to the volumes of merchandise they expect to move. They also plan
to retain thousands of these workers in full-time positions after the holiday
season has ended. It’s not public which types of jobs will become the permanent
jobs, but the fact that Amazon needs additional labor and feels comfortable
retaining some of that labor permanently speaks to their burgeoning business.
No comments:
Post a Comment