Amazon will launch its first smartphone product in June 18. Why Amazon want produce the best phone? What is the core of its product competitiveness? The cost of mobile phone products and how much? This also has implications for what Amazon meager profits?
According to the British technology magazine "PC Advisor" reported that Amazon was most interested in the outside world of smart phones is its legendary naked eye 3D technology. Analysts believe that this technology will be its Amazon Mobile distinguish similar products killer. According to another report, the phone will be powered by 4.7 inches display with a resolution of 720p, processor Qualcomm Snapdragon, running memory to 2GB, 4 includes a resolution to achieve VGA (640 * 480) level camera.
The best smart phone market is huge, 990 million were sold worldwide last year. In addition, the time people spend more on smart phones, according to market research firm eMarketer expects the time Americans spend on the smart phone is 2 hours 51 minutes a day, and time on the PC for 2 hours 12 minutes. Another market research firm IDC, said that Apple an
d Samsung smartphones occupy 15.3% and 31.3% market share, and control the vast majority of revenues and profits.
Profits in this area has also attracted a lot of manufacturers to develop smart phone industry, but the "New York Times" said that most of them sink like a stone, including Microsoft and Google (microblogging) Motorola.
For Amazon, the investors are clamoring to improve its profit margins, the current Amazon's profit margin was 0.38%. The introduction of smart phones could help Amazon to achieve this goal? This possibility is still getting bigger because Amazon may sell at cost price of smart phones to push its Amazon 99 dollars Prime membership growth in the number, which in turn promote increased its e-commerce revenue.
The Motley Fool financial website Amazon smartphone is expected to cost $ 300. Let us assume that if Amazon can grab a 1% market share, sold at cost price of about 10 million smart phones. This is a business for Amazon to bring $ 3 billion in revenue. The site also analysis, assuming that 10 million to buy the Amazon smartphone users choose to sign up half of its $ 99 Prime membership fee. This will bring $ 495 million to its membership fee revenue, and will bring more business electricity supplier.
In this regard, "Times" reports concluded that Amazon's goal is not to make money through the sale of mobile phones, but to provide users with an easy access to the channel for its mall.
In response to these views, the United States Venture investors, strategic adviser Peter Cohen (Peter Cohan) in "Forbes" website published an article expressing a different view. He believes that efforts in the Amazon smartphone will not be anything, are also obsessed with 3D technology will not encourage consumers to buy related products online at Amazon, or forcing other mobile phone manufacturers have developed the naked eye 3D technology.
Cohen believes that it is very clear that Amazon will not easily change its strategy to seize the market by low-cost, so the extra revenue brought smartphones is very limited, it is difficult to provide net income Amazon.
However, Amazon may protect their existing consumer base through smart phones this way, and as much as possible to attract new consumers.
In the last article, Cohen also noted that Amazon's actions are echoed former Intel CEO Andy Grove (Andy Grove) phrase was widely circulated classic saying: Only the paranoid survive (Only the paranoid survive)