Amazon Makes an Entrance into the Smartphone Market

Amazon seems to want to grab a piece of every online business. From books to eBooks to eReaders and more, the company keeps introducing new lines. Will their latest venture be as successful as the rest?

If you are looking for something to purchase, one of the first places you may look is Amazon.com. After all, they have books, clothes, games, or whatever your heart desires… usually. In addition, they have the original eReader, the Kindle, in various types with as much simplicity or complexity as you want. They even have a membership program that allows you to receive free shipping on any order and access to free instant videos, discounts on products, and free eBook “borrowing”. They have entered the original programming market and scooped up exclusive rights to popular series. And let’s not forget Fire TV, Amazon’s answer to Roku. It seems like enough to keep them busy, doesn’t it? Well, they’ve been selling cell phones and plans through their Amazon wireless service, so a natural extension seems to be creating their own smartphone.

Rumors abound as to the features of the smartphone. Some media outlets have reported that it will have a 3D display and advanced controls operated via gestures. They are also supposedly working with AT&T on a unique data plan named after its membership service, Prime.

The big question is: Is this the right time to enter the Smartphone Market? Walk into any retailer that sells cell phones. There are more choices with more features than you can imagine. There is a device for every need. Now go online and check the same retailer’s web site. You will find even MORE phones online than they carry in the stores. How, in this market that’s packed full of companies that have already mastered the art of the smartphone, can Amazon compete?

Coming into a new-to-you business too late can go either way. Amazon could knock the competitors down a peg with its subsidy plan pricing and nifty features, or it could completely flop as many first generation devices do. Think of Kodak film. They did not embrace the idea of digital cameras when other companies were running with the idea. Sticking to their film business delayed their entry into the digital world. This has dealt a debilitating blow to the once powerful photo imaging and film company. They offered too little, too late. Will Amazon be too late to the smartphone party?

Amazon will be competing for customers with established companies, Apple and Samsung. These market leaders have both produced several iterations of their phones, adding features and making improvements with each new release. They know their products and their customers. Can Amazon even begin to know what customers will want and/or expect from them in a smartphone?

Well, if the smartphone doesn’t work out, there’s always the rumored delivery service that would compete with the US Postal Service, UPS, and FedEx. Or maybe they could just settle down and work on improving the sales of their Kindle Fires.

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