So far this year, the top downloaded app for Apple’s iOS is Temu’s. The Chinese company may be the first real competitor Amazon.com Inc. (NASDAQ: AMZN) has and may have had at any time.
24/7 Wall St. Key Points:
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Amazon.com Inc. (NASDAQ: AMZN) faces the first real competitor it may have ever had.
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Temu is a “super discount” e-commerce site with a massive number of items for sale.
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CNBC had this to say about Temu’s success:
Temu, the popular e-commerce app owned by China’s PDD Holdings, topped Apple’s list of the most downloaded free apps on its U.S. iOS store for the second year running, highlighting the massive success that Chinese apps are enjoying in the world’s largest consumer market.
TikTok is just behind it on the Apple download list. China’s ByteDance owns it. TikTok is in a fight to stay in the United States. After Congress voted to ban it, ByteDance is working through the U.S. court system to see if the decision can be reversed.
Temu is a “super discount” e-commerce site. A huge percentage of the items on the site are available for under $30. Some are as low as $2. Its massive number of items makes it a real competitor to Amazon.
Temu’s position could disappear as quickly as it appeared. Lawmakers are worried about its sales to millions of Americans, and for the same reasons they were concerned about TikTok. Temu may be a way for the Chinese to steal data about U.S. consumers. Also, the Biden administration has considered tariffs on the items Temu sells. Those tariffs could be much higher under a Trump administration. The new administration has proposed tariffs as high as 100% on Chinese goods. This could push Temu out of the U.S. market entirely.
Temu represents a problem for Amazon. The government may make that go away.
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