Amazon enters the handset market

Blog Author: Aaron Smith | June 26th, 2014

 

Amazon, unsurprisingly, recently announced the debut of its own mobile phone based on the free Android operating system, but devoid of Google services, and skinned to be a total Amazon device.

The phone will only be available available in the US but will be quickly adopted by many Amazon customers, given its cheap price as well as its tight integration with Amazon services. Some traditional retailers are very concerned that the new devices will allow Amazon customers to more easily shop at their locations, but actually purchase them from Amazon by using the features of this device.

At around US$100 cheaper than an iPhone, the Amazon phone is aimed at a much more mass market than an iPhone. It is especially aimed at loyal Amazon customers wanting to further live within the Amazon ecosystem. For a summary of the important points about the phone see:

What you need to know about the Fire phone

It seems unlikely that the Fire phone will make to Australian shores any time soon, if at all. It does however provide what is expected to be strong competition with other Android devices for Amazon customers and users. That fact can only be good for the market.

It is interesting that like the traditional desktop market, the device market is more about tying people into an ecosystem whether that be Google, Amazon, or Apple, etc. The benefits are all around the apps rather than the devices going forward, much like what has transpired with the traditional PC market.

If you are a loyal Amazon customer don’t hold your breath for their latest device to hit our shores but continue to watch with interest at what disruption it may cause the more established players.

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