Economist Ted Bauman Explains Why Amazon Is No Monopoly Like Apple

November 20, 2018 @ 6:41 am

Economist Ted Bauman of Atlanta, Georgia, is the editor of The Bauman Report. He shares his perspectives in this monthly publication when it comes to economic trends, protecting wealth and privacy, safely growing a financial portfolio, and international immigration. He spent most of his working career in South Africa but returned to the United States in 2008.Over the summer of 2018, Ted Bauman wrote an article about Amazon and why shareholders should have some concerns. In this article, he related the story of Steve Jobs and Apple. Steve Jobs released the iPhone in 2008 and it changed Apple’s focus and the entire business investment world. The iPhone is by far the most popular smartphone around the globe and generates 75 percent of Apple’s annual revenues.

The iPhone gave Apple the power of a monopoly when it comes to mobile devices, Ted Bauman explained in his article. They now have an entire ecosystem of products and services that have made millions of people feel locked into. It was the first company to ever exceed $1 trillion in value.Jeff Bezos of Amazon is now serving in a similar business leadership capacity as Steve Jobs had. This company is worth over $560 billion and just about every product imaginable is sold on Amazon. About 90 million people are Prime members and many only shop at Amazon when buying something online.

Ted Bauman wrote that, despite this success, Amazon doesn’t have monopoly powers like Apple continues to enjoy. He wanted to warn shareholders of Amazon in his business article about some vulnerabilities in this company he saw. Retail experts say that around half of everything sold on the internet will be bought through Amazon within three years. He says this just isn’t so.As he points out, Walmart generates three times as much annual revenue as Amazon does. Even the Kroger chain of supermarkets outpaces Amazon when it comes to income. Right now Target, Walmart, Apple, Macy’s, and eBay control 56% of all e-commerce. Amazon is a big company, Ted Bauman says, but it certainly is no monopoly.

 

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