Tuesday, June 17, 2014

Why Amazon Wants its Own Smartphone: $$$$

save imageNearly 30 percent of Amazon users access the site exclusively on their phones. In 2012, perhaps five to eight percent of Amazon's total sales were made from mobiles, representing perhaps $3 billion to $5 billion worth of sales volume. 


Fully 55 percent of all time spent with online retail in June 2013 occurred on a mobile device, comScore says.




In the United States, in March 2014, about 71 percent of time spent at Amazon.com originated from a mobile device, comScore also says. That is the same percentage of mobile time spent as seen at eBay, and trails only the 99 percent figure for Apple sites. 



Smartphones accounted for 44 percent of retail Internet minutes while tablets accounted for 11 percent.  



Amazon Set to Unvel Smartphone with 3D display Exclusively with AT&T

With Apple and Samsung the dominant U.S. smartphone providers, with 60 percent share and nearly 100 percent of the profits, any new provider has to ask itself what segment it has to create or capture to have a shot at success.

Amazon, certain to face skepticism about its prospects, appears ready to introduce a new smartphone of its own, exclusively on the AT&T network, and featuring a three-dimensional display as a unique feature.

To be sure, Amazon might always have been expected, if entering the smartphone business, to emphasize content, given its core business model. So the 3D feature, said to be usable without use of any special glasses, will cater to video content consumption and product sales, matching the content and product sales business model.

Few other smartphones have had such a specific positioning. One might argue Blackberry had an “email-optimized” approach.

Likewise, others had at least contemplated whether a “Skype-optimized” or “Facebook-optimized” approach might have appeal. Certainly a music-optimized approach has had appeal (“Beats”).

In many ways, a 3D approach might be said to be optimized for video content consumption. Whether Amazon will be successful is, of course, to be determined. But Amazon believes its Kindle strategy is working, allowing Amazon to sell more content. Fire TV is another move in that direction.

Clearly, Amazon hopes its smartphone strategy will work at least that well.

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