Why Amazon Might Want a Big Piece of the Smartphone Market 61
Nerval's Lobster writes: If rumors prove correct, Amazon will unveil a smartphone at a high-profile June 18 event in Seattle. According to a new article in The New York Times, Amazon's willing to take such enormous risks because a smartphone will help it sell more products via its gargantuan online store. In theory, a mobile device would allow customers in the midst of their daily routines to order products with a few finger-taps, allowing Amazon to push back against Google and other tech companies exploring similar instant-gratification territory. But a smartphone also plays into Amazon's plans for the digital world. Over the past several years, the company has become a popular vendor of cloud services and used that base to expand into everything from tablets to a growing mobile-app ecosystem. A smartphone could prove a crucial portal for all those services. If an Amazon smartphone proves a hit, however, it could become a game-changer for mobile developers, opening up a whole new market for apps and services. Amazon CEO Jeff Bezos has succeeded in the digital space largely by opening up various platforms—whether Kindle self-publishing or the Amazon app store—to third-party wares. It'll be interesting to see whether he does something similar with the smartphone.
Early reports suggest Amazon's phone will be exclusive to AT&T.
Drive amazon services? (Score:4, Interesting)
It's odd - I'm not sure if a phone would drive more amazon services. What's their motivation? They already see what I buy, when, and in many cases for whom, but they don't really seem to use that information very effectively.
I see some targeted stuff, but not as much as I would expect given my ridiculously long shopping history. A phone would allow them to know more, but they don't seem to be using the data the have...so the extra data would be pointless.
They're not like google, in that their mobile is not a stalking horse for targeted ads. They're not really like Apple, since they don't really make high-end hardware. Launching a cellphone because you're feeling left out isn't really a great business case. Amazon doesn't really need to control the experience, since you can buy anything on amazon on other platforms.
Maybe they got a good deal on bulk minutes and cheap hardware, and want to pass the savings onto the public?
Re:Drive amazon services? (Score:4, Interesting)
I think it's easy to see where they are going: You take your Amazon phone to the store, snap a picture of what you want, and get it shipped to you. Or not.
Amazon then uses the decisions and GPS coordinates of the people using their phone to discover that store X in your city is cheaper than Amazon. They then lower the price of that item that they show to the people whose phones are or have been in that store, until the people in that store start buying it from Amazon instead.