Amazon Expands Grocery Service

Amazon.com Inc is add more territory to its online grocery delivery program to Brooklyn’s well-heeled Park Slope neighborhood, giving the No. 1 U.S. online retailer a foothold in one of the wealthiest and densest markets in the United States.

The AmazonFresh program, which offers same-day or next-day delivery on more than 500,000 items including fresh and frozen groceries, will soon expand to other areas in Brooklyn.

The move is part of Amazon’s slow build-out of its “Fresh” program, targeting one of the largest retail sectors yet to be upended by online commerce. Amazon declined to say if it will expand to Manhattan or other parts of the New York metro area.

“Currently, we are offering AmazonFresh in Brooklyn and will continue being thoughtful and methodical in our expansion,” an Amazon spokeswoman said in an e-mail.

Groceries have proven to be one of the toughest sectors for technology companies to manage, and Amazon faces competition from established companies like FreshDirect as well as fast-growing startups like Instacart.

But a successful foray in Park Slope could help Amazon cement customer loyalty and boost sales, especially among wealthy and middle-class families, analysts have said.

The top 10 to 20 percent of wealthiest Americans spend between 3 and 4 times more on food than the average American family, according to Bill Bishop, chief architect at Brick Meets Click, a consulting firm focused on retail technology.

“They are the sweetest of shoppers so anybody who attracts that business is taking the cream of the market,” Bishop said.

Amazon could also use its Fresh program to experiment with its own delivery service, analysts have said.

Source

Verizon Wants Dish’s Spectrum

Verizon Communications Inc unit Verizon Wireless is in hot pursuit of satellite-TV operator Dish Network Corp’s spectrum to improve wireless internet speeds, the New York Post reported, citing sources familiar with the matter.

The two companies have held informal, early talks about the spectrum, the report said.

In May, Verizon Communications Chief Executive Lowell McAdam shot down rumors that the company was in potential merger talks with Dish.

Federal Communications Commission Chairman Tom Wheeler has proposed restrictions on how much the biggest wireless carriers can bid for in a major auction of TV spectrum scheduled for mid-2015.

A possible merger between Sprint Corp and T-Mobile US Inc could prompt U.S. regulators to rewrite rules they are now considering for the auction.

Source

Will Foxcomm Invade The US?

Foxconn Technology Group is weighing whether or not to expand its existing manufacturing operations in the U.S., in a move that could be linked with Apple’s plan to bring back Mac manufacturing to the country.

Foxconn made the statement last Friday after Apple CEO Tim Cook said in interviews with NBC and Businessweek that Apple would manufacture one of its Mac lines in the U.S. by the end of next year.

“So we’ll literally invest over $100 million,” Cook said. “This doesn’t mean that Apple will do it ourselves, but we’ll be working with people, and we’ll be investing our money.”

Analysts said Foxconn could be involved. The Taiwan-based firm is a major supplier for Apple, helping to build its iPhone and iPad. But much of that manufacturing is done in China, where Foxconn employs 1.2 million workers and labor costs are lower.

Without elaborating, Foxconn said it was considering the expansion in order to meet the needs of it customers, and to “leverage the high-value engineering talent” available in the U.S. market.

It’s unclear what kind of manufacturing operations the company already has in the U.S. An expansion in the nation, however, would face challenges, said Amy Teng, an analyst with research firm Gartner.

“From the financial perspective, I don’t see any advantage in why they (Foxconn) would assemble there, unless this is part of Apple’s plan,” she said. Labor costs in the U.S. are higher and it will be harder for the company to recruit U.S. workers for menial factory jobs, when compared to China.

Source…