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Fire Phone: It's All About Amazon Selling More Product

Fire Phone: It's All About Amazon Selling More Product
By Jennifer LeClaire

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Most likely, the Fire Phone will give Amazon.com the ability to grow in television, music, radio and so on, more quickly. Amazon's Fire Phone is less about competing with iPhone and Galaxy and more about helping Amazon continue to build loyalty, solidify customer relationships -- and sell more products and services, said analyst Jeff Kagan.
 


The technology world is on fire over, yes, Amazon’s Fire Phone. It’s the first-ever 3D smartphone, though it may behave as much like a mobile vending machine as it does a mobile phone.

The Amazon Fire Phone sports a 4.7-inch IPS screen, a 13-megapixel camera with image stabilization, a quad-core 2.2 GHz processor, 2 GB memory, and unlimited photo storage on Amazon Cloud Drive.

AT&T has the exclusive, selling the device at $199 for 32 GB or $299 for 64 GB of internal storage with a two-year contract. At launch, consumers can also get a free one-year subscription to Amazon Prime. The phone is available for pre-order now, with deliveries scheduled to begin July 25.

No Need To Beat Apple

We turned to independent telecom analyst Jeff Kagan for his take on Amazon’s Fire Phone. He told us the device is less about competing with iPhone and Galaxy and more about helping Amazon continue to build loyalty, solidify customer relationships -- and sell more products and services.

“The question is, a few years from now, will this Fire Phone be remembered as one of the wireless industry's key moments," like when Apple's first iPhone was introduced? "Or will this not be as big a smartphone competitor, but another way for Amazon.com customers to shop?” Kagan asked.

As Kagan sees it, the Fire Phone does not have to win the competitive battle with the iPhone or Samsung's Galaxy S line. That’s just not the purpose for Amazon CEO Jeff Bezos rolling out the company’s first-ever smartphone. Instead, Bezos is all about the e-commerce. And just like Amazon's Kindle e-reader made it easier to buy books, Amazon's Fire Phone will make it easier for consumers to buy more products from the e-tailing giant.

Key Differentiators

“Not every new smartphone is a big hit. However, I think Amazon will be successful, at least to a point,” Kagan said. “They will succeed with one slice of the pie. Their tens of millions of existing Kindle customers will buy plenty of these over the first year. Then we’ll have to see if they can expand beyond that first slice.”

Nevertheless, Apple and Samsung have the lion’s share of the market. That means Amazon is going to have to steal market share from industry behemoths, or at least from the struggling BlackBerry, or Nokia, or LG, in order to expand beyond its loyal following of e-reader and tablet users. (continued...)

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Comment:

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Rian P.:

Posted: 2014-06-20 @ 6:14am PT
I think it's dead in the water! Not everyone shops on Amazon.



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