The recent subject of speculation from technology experts and market analysts around the world has been regarding Amazon’s entry into the smart phone market. Collaborating with Foxconn, the Chinese company which also manufactures Apple iPhone, it plans to manufacture an Android-based smart phone.
Amazon’s move into the smart phone market has been for several reasons such as in today’s time consumers have started relying more on mobile devices to access the online content. It is a trend which will define the future of online communication. Amazon could be on a losing side if they do not take the advantage of showing their presence in this kind of rapid growing market. Amazon’s smart phone can also get the benefit of Amazon Kindle when it comes to software platform and device interface.
Amazon wouldn’t want to cash on its smart phone in an initial basis like Amazon Kindle. Its goal initially might be to bring in new customers and maintain the loyalty of existing ones. With Amazon Kindle as a major support, Amazon’s smart phone can go for a razor-blade strategy, where unique design of razor attracts customers to buy a particular shaving kit and major part of revenue is generated from the blades.
Amazon is likely to be benefitted from its loyal customer segment that are already Amazon Kindle and would be pretty much excited to buy another Amazon device. Also Amazon might get support from various service providers who will help Amazon make its entry into the mobile phone market as it will give the service providers power to negotiate with Amazon as far as providing services are concerned due to the fierce competition already existing in the smart phone market. Also Amazon has the capability to use its direct powerful channel to market its products and make revenue from sales made to the customers.
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But at the same time Amazon might also face a high amount of cut throat competition by introducing its smart phone in a market where already big names exist. On an initial basis it might be very difficult to develop a phone that can successfully compete with the likes of major players such as Apple, Blackberry, HTC, Nokia and Samsung to name a few. Also by introducing iPhone successfully in the smart phone market, Apple has set the bar very high for the new entrants as even the existing biggies have a real tough time giving Apple a competition. In order to make its place strong, Amazon needs to learn in advance how to maneuver patents designed to protect existing mobile technologies. Here another potential hurdle Amazon might have to overcome is to convince the target customers as to why Amazon smart phone is a viable alternative to buy over Apple iPhone, Blackberry Bold and Curve Series, Samsung Galaxy or HTC & Nokia smart phones.
Our Expert Technology Analysts at SpinxWeDesignChicago.com thinks these challenges won’t de-motivate Amazon to make its foray into the mobile-phone market because even without necessary technical skills and assets, Amazon has its magnanimous brand name to back it up, and also you cannot forget the story of Apple when it was about to launch its iPhone six years ago and was in the same place where Amazon is standing today. It is expected that Amazon might start the production of its smart phone either at the end of 2012 or at the beginning of 2013 and the speculation is it might come up with a screen of size in the range of 4-5 inches.