Good article by Jeff Kagan about the Amazon.com Fire Phone

Discussion in 'Amazon Android Phones & Tablets' started by danDroid, Jun 18, 2014.

  1. danDroid

    danDroid Administrator
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    Amazon.com Fire Phone Smartphone Announced Today | Industry Analyst Jeff Kagan

    Today, Amazon.com announced their new Fire Phone smartphone

    Fire Phone is less about competing with iPhone and Galaxy and more about helping Amazon.com continuing to build loyalty, solidifying customer relationships and selling more stuff.

    The question is, a few years from now, will this Fire Phone be remembered as one of the wireless industries key moments like when the first Apple iPhone or Google Android or Samsung Galaxy was introduced? Or will this not be as big a smartphone competitor, but another way for Amazon.com customers to shop?

    AT&T Mobility is the Amazon.com exclusive carrier which expands their exclusive Kindle relationship to this Fire Phone. This reminds me of AT&T being the exclusive carrier for the iPhone a few short years ago. I don’t get the sense that this is the same kind of event, but the upside for AT&T is still quite strong with this deal.

    Whether it will be successful like the Apple iPhone or Samsung Galaxy, and not like the Facebook smartphone is the big question?

    It’s important to note that this Fire Phone does not have to win the competitive battle with the iPhone or Galaxy. That’s not the purpose. The purpose is simply to give customers more ways to buy stuff from Amazon.com, like with the Kindle.

    Not every new smartphone is a big hit. However I think Amazon.com will be successful, at least to a point. 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.

    I think there is a segment of the marketplace which prefers their Kindle to an iPad or Galaxy tablet and these may be the first customers who are interested in the new Amazon.com smartphones. The next logical question is how many customers?

    The next question is, how can Amazon expand their market? Today most people who want a smartphone already have a smartphone, so Amazon.com will be trying to get iPhone or Android users to switch.

    3D is another question. Will this be a real success, or just a fad that doesn’t amount to much? It’s cool to look at and play with for a few minutes. What happens beyond that we’ll just have to wait and see.

    I think this Fire Phone will give Amazon.com the ability to grow in television, music, radio and so on, more quickly. Amazon.com Kindle customers spend more money and buy more content than customers of other hardware like the iPhone and Galaxy.

    I expect these new Amazon.com Fire Phones to follow the same model as the Kindle. I don’t see Amazon.com making money on the device, but they will use it to get customers to spend money at their site. And Amazon.com is a massive online store where customers can buy almost anything.

    In the short-term this will be a success. As far as long-term we’ll just have to keep our eyes on them and see. I don’t see this being a failure like the Facebook phone. Amazon.com already has a base of Kindle customers. A percentage of that group will make up the first wave of new smartphone customers. They will be successful, the question is how successful.

    However winning in the highly competitive smartphone market is much different than winning in Amazon.com’s traditional markets. They are successful with their Kindle. Can they also be successful with this Fire Phone? We’ll see.


    * * * * * * * * * * * * *
    About Jeff Kagan

    Jeff Kagan is an Industry Analyst who is regularly quoted by the media over 25 years.

    He offers comment on wireless, telecom and tech news stories to reporters and journalists.

    He follows wireless, telecom, Internet, cable television and IPTV. He also follows the wider and more general consumer electronics and technology space.

    Visit his website: at jeffKAGAN.com to learn more and for disclosures.


    Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.

    Clients: He has worked with many companies over 25 years as consulting clients.

    Contact: Jeff Kagan by email at jeff@jeffKAGAN.com or by phone at 770-579-5810.

    Kagan is an Analyst, Consultant, Columnist and Speaker.

    Twitter: @jeffkagan
     
  2. kodiak799

    kodiak799 Gold Member

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    A lot of interesting points. Amazon could (does?) easily do this with apps, but it's not so easy to get the user to install and actually utilize the app (hence the Kindle and this).

    Will be interesting to see how this develops. The kindle gave people an affordable option to read books and do some light surfing. With a phone you're talking basically skinning Android, so it remains to be seen much control of the user experience people are willing to cede to Amazon.