Amazon has had to face the fact that its Android Fire phone has failed to garner much support. It currently is being sold for $1 and only has a 20% approval rating on Amazon!
The result shows difficult it is for a new player to break into the established mobile handset space. Many would also point to the fact that people are more than willing to pay a premium for additional features. There appears to be little appetite in Western countries for phones which aren’t full featured.
So where does this leave Amazon? It is a fairly stinging rebuke for the company that has largely become the Internet’s online department store. Having a dedicated device to shop on Amazon does not appear to be what the market is looking for at all, at least in the US. It would seem unlikely that Amazon will attempt the same strategy any time in the near future and may have more challenges on its hands as it battles to show growth for shareholders.
So many times we focus on the technology successes of businesses like Amazon, Google and Microsoft but it is important to note that not everything these businesses touch turns to gold. In fact, there are plenty of failures along the way. However, you shouldn’t necessarily see this as a failure. Companies like Amazon didn’t get to the size they are by not learning from their experiences.
Amazon will recover from this set back and attempt things to challenges the market leaders. The more competition the better for consumers means we all benefit, even if some what indirectly, from things like the Fire phone.
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