Amazon.com Inc. (NASDAQ:AMZN) recently partnered with India’s telecom giant Bharti Airtel to provide free one-year subscription of Prime services to postpaid customers of Airtel.
The offer will be available for new and existing postpaid subscribers who use “Infinity Plan” of Rs.499 & above and the subscription can only be activated through Airtel’s TV app. Customers of Airtel V-Fiber broadband are also eligible to avail the subscription, Airtel said in a statement.
The partnership will help Amazon to rapidly penetrate the Indian market, primarily due to Airtel’s dominant market share and reach. Airtel has market share of almost 30% with total mobile subscribers at the end of September 2017 of 946.66 million, according to Cellular Operators Association of India’s report.
Understanding Indian Population
This partnership will help Amazon to understand the needs of the local population better. The partnership will enable Amazon to gather substantial data, from which it can not only deduce viewing and sales patterns but also understand the preferences of Prime members in India.
This will help Amazon refine its current strategies for the Indian market and make course corrections. The company can also bring more impactful shows to its online video library, Prime Videos, which will resonate better with Indian subscribers.
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Attracting Customers
Prime members are much more loyal and spend double the amount spent by non-Prime members. This is the reason why the company is focused on promoting the service in India.
We believe the partnership with Airtel will rapidly boost Prime subscriber base in India.
Zacks Rank & Stocks to Consider
Amazon has a Zacks Rank #3 (Hold). Broadcom Limited (NASDAQ:AVGO) , NetApp, Inc. (NASDAQ:NTAP) and Applied Materials, Inc. (NASDAQ:AMAT) are some of the better-ranked stocks in the broader technology sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Broadcom, NetApp and Applied Materials is projected to be 13.8%, 11.3% and 12.7%, respectively.
Wall Street’s Next Amazon
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