There is a speculation; along with various published reports that now Amazon is preparing to enter Smartphone market. This retail company online is reportedly trying to jump in the fray for complementing their current mobile offering, Kindle Fire tablet. However, for the sake of Amazon, it is not feasible for them to enter this market of Smartphones. It may just seem like a nice place to be if one examines the success of Apple with the iPhone but again, not every other company is Apple.
As a matter of fact, a latest research shows the Apple and Google operating systems make up approximately 80% of all the Smartphones, with RIM at the third place with 13% fast-shrinking share. By manufacturer, following companies make up 71% or more of all the Smartphones sold:
This clearly means that Amazon is challenging some serious Smartphones in the market.
Five Reasons Why Amazon Should Stay Away From Smartphone Market:
Extreme loyalty of customers towards their Smartphones
Around 90% of the smartphone users download additional apps and an expected $14 billion are about to be spent on the purchases of apps in 2012. When a Smartphone user is asked to switch, he would basically be asked for walking away from such an investment. Around 1 in 5 Smartphone users would switch their banks rather than their Smartphones. Customers get comfortable with their current operating system and do not wish to transfer all of their contents from their phone to another.
It is not another tablet
Amazon understands tablets certainly but the Smartphone market is more crowded and it is governed by various tough rules. Amazon would require to play well with the carriers, and try to promote their products in the market as much as it is possible. The basic point is, competing in the smartphones in really different and a lot more difficult as compared to the tablets.
Amazon is not so high when it comes to design
It is very important to note that when a cheaper device is being offered in tablet space, the consumers usually pay to forgo the high-quality design. If one considers the Smartphone space, it is much different so the design would have to prove itself really well. There is just one problem and that is, Amazon has to truly show that it understands the high-quality design.
According to a few reports, it is possible that Amazon’s Smartphone would launch by the end of the running year. And if it really gets launched in the said time period, the company would get in trouble. The reason is that Apple would most likely launch iPhone 5 somewhere around October. The last thing that Amazon would want to do is to compete with iPhone 5. The company missed that memo unfortunately.
How would Android be handled?
A nice thing about Kindle Fire is that a user would not know that it is running Android. But who knows Amazon would pull the very same trick on a Smartphone or not. After all, Google heavily promotes Android 4.1 and the customers may expect at least a few of those elements to be available. And If Amazon would not do that, it might hurt the company as well.
Apart from all such reasons, Amazon still lacks a long-term strategy. As it continues to deliver the cheap devices, it does not really appear to be ready for establishing a full strategy. And when it comes to the market of smartphones, short-term strategies are not really a good thing.
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