With the immense success of Kindle Fire and it’s sales expectedly surging well beyond 6 million units by the end of this quarter, it’s being said that Amazon may well jump on the mobile phone bandwagon too. In fact, some are saying that Amazon is definitely there in the smartphone market, all set to release it’s own device by the end of next year.
Low-cost devices with priced content:
The strategy Amazon has used with it’s Kindle Fire is great. It has tried to sell the tablet at as low a cost at possible. So where will it get the profits from? Well, the content that Kindle Fire will mostly be displaying will be coming from Amazon stores – in fact that’s what Kindle Fire makes you do, buy content right off Amazon. And therein lies the real gain for the retailer giant.
According to analysts, Amazon may use the same strategy with smartphone. It may release a smartphone, release it with a low-cost price tag which will be very lucrative and then earn it’s profits through content. And if that works, this may threaten the other smartphone contenders the same way Kindle Fire took other tablets by the storm.
But not many are sure that this may work. While content is of the prime value when it comes down to tablets, it’s not a very big deal on smartphone. Smartphone users may well prefer other factors over content and this may put Amazon’s plans in jeopardy. However, the speculated cost of Amazon’s smartphone is $150 to $170 and that’s one mouth-watering and tempting price-tag!
Image Courtesy liewcf and Claudio Andres.
