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What Amazon Phone Could Mean
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datrappert
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datrappert,
User Rank: Apprentice
6/16/2014 | 10:55:26 AM
It all depends on the service plans....
I'm all bought in to Amazon's ecosystem already:  Amazon Prime, Kindle Fire HD, Kindle Paperwhite. But what will really sell me Wednesday is the service plan Amazon is offering. I'm switching jobs and my new employer has a BYOD policy. All else being equal, I'll go with a Verizon iPhone because I already have an MacBook Air and like the convergence between the new versions of iOS and OS X. But if Amazon offers me a data plan that costs significant less than Verizon, then they will win my business.
Lorna Garey
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Lorna Garey,
User Rank: Author
6/16/2014 | 11:21:58 AM
Backlash
 Amazon risks people seeing it as a monopoly that's going to stifle competition over the long term -- bad news for consumers. Plus there's the creepy factor of it knowing so much about us. I already defaulted to Better World Books whenever possible for physical books, even before the Colbert-driven Hachette flap. 

The company better market this device carefully.
Bhori
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Bhori,
User Rank: Ninja
6/16/2014 | 5:27:53 PM
Re: Backlash

Amazon risks people seeing it as a monopoly that's going to stifle competition over the long term -

@ Lorna: Sounds true. But I think in the short-term it has increased the competition and lead to better prices for consumers, and this is what buyer usually seek. Very few buyers cares about going some businesses out of business when they are offered 20% savings.

Lorna Garey
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Lorna Garey,
User Rank: Author
6/16/2014 | 6:39:54 PM
Re: Backlash
That's certainly true. However, the last thing Amazon wants is to be equated with Walmart in the upscale consumer's mind. I know I have seen opposition to Walmart opening in some towns out of fear that it will kill downtown and sink small businesses. One day, people woke up and realized that there are no more independent bookstores. Amazon's fault?

I'm not saying that's necessarily fair -- ebooks in general and the recession contributed. But often perception is reality.
PedroGonzales
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PedroGonzales,
User Rank: Ninja
6/17/2014 | 6:54:55 PM
Re: Backlash




i think amazon has a huge challenge because although they would provide an specific amazon experience to user via their smartphone.  the smart phone market is already saturated with other competitors the likes of apple and google. I'm very interested to see how they would try to make their mark in this market.
Shane M. O'Neill
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Shane M. O'Neill,
User Rank: Author
6/16/2014 | 11:46:45 AM
WIll thriving ecosystem and low price be enough?
Amazon has a thriving ecosystem and the Kindle Fire tablet shows Amazon can play to win on mobile devices. Amazon has never been afraid to price the hardware low, knowing its commerce services will pick up the slack. I expect it will follow that same strategy here. But with smartphone users mostly happy with their iPhones and Android phones, I wonder if Amazon, despite its commerce muscle and generous pricing, is simply too late to the game.
danielcawrey
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danielcawrey,
User Rank: Ninja
6/16/2014 | 2:24:23 PM
Re: WIll thriving ecosystem and low price be enough?
I have long believed that both Amazon and Facebook need branded smartphones. Many have disagreed, but I still have an affinity for hardware. I still think that it is important. 

For Amazon, the opportunity is obvious: it would be like having a price comparison machine in a user's pocket. For Facebook, it's all about hardware control, messaging and more data than ever before. 

I think these companies both will do well to offer their own phones. 
villandra
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villandra,
User Rank: Strategist
6/16/2014 | 11:53:43 AM
They'll have to offer the phone for under $50
They'll have to offer me the phone for under $50.   If they do, they can send what ads they like.   
Shane M. O'Neill
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Shane M. O'Neill,
User Rank: Author
6/16/2014 | 12:00:56 PM
Re: They'll have to offer the phone for under $50
Yeah, $50 seems about right to differentiate from pricey iPhones and Samsung S5's. But the perception may be that it's a shoddy phone because it's so inexpensive. So Amazon better not cut corners on quality.
ChrisMurphy
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ChrisMurphy,
User Rank: Author
6/16/2014 | 12:10:19 PM
Re: They'll have to offer the phone for under $50
Is a smartphone optimized for shopping a niche market? Most people want their phones to text, game, map, and use a small handful of apps. Shopping will grow in that mix, especially as the smartphone becomes the wallet, but the others won't diminish. Seems to me people still want that Swiss army knife of a phone.   
villandra
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villandra,
User Rank: Strategist
6/16/2014 | 12:16:30 PM
Re: They'll have to offer the phone for under $50
Shane, the reason why they should offer a $50 phone is as a promotion, or in exchange for agreeing to be spammed by their ads.   

 

Most companies offer refurbished phones for under $50, which is also fair.   

 

Bottom line, like many people, I won't be paying $200 or more for a phone, nor signing a contract with a company whose service and quality are unproven.    There have been alot of problems with the Google phones.    
MFeibus
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MFeibus,
User Rank: Strategist
6/16/2014 | 12:36:18 PM
Re: They'll have to offer the phone for under $50
$50 with a contract would set the phone apart from the high-end models. But $50 with no commit is just too low. For the moment, smartphones at that price point are being used to attract customers who are still carrying feature phones, and that's not who Amazon will be targeting.

Whether by price or by features, Amazon will have to make the device compelling on its own because consumers by and large won't select a phone specifically because it will help them shop. That might be something they'd come to appreciate after it's in their hands. But they won't buy it for that reason.
Ariella
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Ariella,
User Rank: Author
6/16/2014 | 12:52:29 PM
Re: They'll have to offer the phone for under $50
Perhaps Amazon could offer some kind of package that gives you  the phone when you purchase Amazon Prime. 
MFeibus
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MFeibus,
User Rank: Strategist
6/16/2014 | 1:12:52 PM
Re: They'll have to offer the phone for under $50
Oh yeah. I've got to believe that Amazon will cross promote the phone and Prime. The Prime music service might be a carrot that helps push the phone. I wouldn't be surprised to see the phone branded with the Prime moniker - that and/or the Fire brand.
Ariella
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Ariella,
User Rank: Author
6/16/2014 | 1:15:02 PM
Re: They'll have to offer the phone for under $50
It makes sense to me. After all, the phone and Amazon would promote each other, and the company does promote its Prime service at every purchase.
Lorna Garey
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Lorna Garey,
User Rank: Author
6/16/2014 | 2:05:18 PM
Re: They'll have to offer the phone for under $50
Let's face it, the price of the phone itself is a small part of the decision. Over 24 months, the difference between $50 and $100, or even $150, is minor. The lion's share of the cost is in the data plan. If Amazon figured out how to get around 3/4G bandwidth limits, now THAT would be a selling point. Though as others have pointed out, it also needs the app ecosystem. No one is buying a phone that they can't run Twitter, Facebook, etc. on.
Ariella
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Ariella,
User Rank: Author
6/16/2014 | 2:13:30 PM
Re: They'll have to offer the phone for under $50
@Lorna good point. One has to remember what people will expect to be able to do on their phones. 
Shane M. O'Neill
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Shane M. O'Neill,
User Rank: Author
6/16/2014 | 3:31:13 PM
Re: They'll have to offer the phone for under $50
Yep, a deal on hardware only gets you so far. How can Amazon work around pricey data plans? Build its own? Maybe eventually. Also, the Amazon app store is weak, at least compared to Apple and Google. I'll reserve judgment until the product is actually unveiled, but it's up against a lot barriers, in theory.
Bhori
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Bhori,
User Rank: Ninja
6/16/2014 | 5:28:26 PM
Re: They'll have to offer the phone for under $50

@ Villandra: I think if someone is going to buy phone specifically for its cheap price in exchange of accepting their ads, they will later try figure out the way to get rid of those ads. Also, I guess amazon would not want give phone at throw away price in exchange of blind promotion. I think the price of phone would be normal in relation to specs, but the discount would be compensated somewhere in business coming through those phones

 



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