Boston, MA 06/19/2014 (wallstreetpr) – Amazon.Com, Inc. (NASDAQ:AMZN) finally unveiled its new Fire Phone smartphone packed with features such as image recognition tool that will allow customers purchase items from its online store. The biggest challenge sure to hit the giant online store is the fact that the smartphone industry is one of the most competitive, dominated by the likes of Apple Inc. (NASDAQ:AAPL) and Samsung Electronics.
Fire Phone to Act as a Shopping Tool
Fire phone was developed’ with a view of giving Amazon that exclusive opportunity of placing web-store, as well as other services directly in front of customers. One of the major downsides of the smartphone is that it is only available on AT&T Inc. (NYSE:T) network at $199, the same price as Apple’s iPhone and Samsung Galaxy. It will be extremely difficult for people to leave their iPhone’s and Galaxy’s and decide to purchase Fire Phone as it does not have that mass appeal.
Amazon.Com, Inc. (NASDAQ:AMZN) has to find a way of convincing its consumers to buy Fire Phone if it is to’ enjoy increased purchases from its stores. The Smartphone is likely to funnel more users towards making purchases in Amazon.com if bought in masses. The online store has already announced that the smartphone will come with $99 worth of prime membership.
Amazon Evolution
The launch of the smartphone highlights Amazon evolution from an online book seller to a global technology that looks set to rub shoulders with other tech giants. The launch of Fire Phone comes as more people continue to move their digital lives into reliance of smartphones for almost everything away from traditional Personal Computers.
Amazon.Com, Inc. (NASDAQ:AMZN) can enjoy growth in the smartphone industry with the new phone if it can avoid having its app bundled with hundreds of thousands on Apple Inc. (NASDAQ:AAPL)
and Google Inc. (NASDAQ:GOOG) Store. The Online store can also achieve great success by essentially putting the app at the center of its phone. The company is selling the gadget at the cost price hoping to make more money when people use it to make purchases online. The device is also expected to give Customers access to the company’s “Mayday” technology help service
Amazon.Com, Inc. (NASDAQ:AMZN) has declined to comment on the possibility of launching the phone in Europe although people familiar with the company claim talks are already ongoing with Vodafone Group Plc (ADR) (NASDAQ:VOD) and O2 about the same.
