How Amazon’s latest strategy is disrupting the PC industry

Amazon, Google and other tech giants have joined forces to make a push to drive down the price of PC components and services.

Key points:Amazon has teamed up with PC makers to offer cheaper PC componentsAmazon has launched a partnership with PC maker Cooler Master to sell PC casesAmazon is offering a 10 per cent discount on its latest products and servicesAmazon is launching its own smartphone business Amazon is selling PC accessories from the same suppliers as Google and MicrosoftAmazon is making it easier to buy PC parts from third partiesAmazon is now offering a discount on PC parts, including case and motherboard manufacturers.

Its Amazon’s first foray into selling its own PC components since its purchase of PC maker Compaq in 2016.

Amazon is planning to sell its own branded PC parts through CoolerMaster, the same company that sold its PC components to the likes of Dell and HP. 

It’s an ambitious plan for Amazon, which previously relied heavily on third-party suppliers and suppliers only, rather than selling its products directly to customers.

Amazon’s move to sell through Coolermaster will give it a greater competitive edge in the PC market, said Jeff Bezos, Amazon’s founder and CEO.

“The new model is the fastest way for Amazon to become a leader in this new arena, with a massive scale advantage,” Mr Bezos wrote in a blog post.

Amazon has been selling its PCs and accessories through its own Coolermasters since 2017.

The company had previously sold PC components through third-parties including Intel, Lenovo and Asus.

The move is part of an effort to reduce its dependence on third parties for components and make it easier for consumers to buy its own hardware. 

Coolermaster was founded in 2014 by former Apple engineer Steve Jurvetson, who founded Dell. 

Mr Jurvettson’s son, Eric, is the current chairman of the company. 

In a blog, Coolermaster chief executive officer Dave Wainwright said the partnership would allow Amazon to offer its own products, as well as parts and software, at significantly lower prices.

“This partnership will help Amazon to achieve a greater level of differentiation and drive lower prices for our customers and we are looking forward to working with them on this new model,” Mr Wainwys said.

“Amazon is a leader on the PC space, and we see a huge opportunity to deliver the best value on the market through their PC partners.”

Amazon has already begun selling its PC products through third party suppliers, including Cooler master and Gateway PC.

The PC market is estimated to account for about 10 per of Amazon’s global revenue, according to the company’s latest annual report. 

But in the past year, PC manufacturers have been ramping up their supply chains to meet increasing demand for their PC components.

In January, PC maker Lenovo announced a deal to sell components through Cooledirect, the company behind Cooler and Gateway PCs. 

Last month, Microsoft announced plans to buy Cooler’s PC business. 

Apple’s Mac business is also expanding.

Apple is also offering a similar discount to third- party suppliers for its upcoming Mac Pro computer.

Amazon did not respond to a request for comment.


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