Amazon baits for larger online sales volume through Fire smartphone
Amazon’s new flagship Fire smartphone was launched yesterday in Seattle which has got more than usual attention, challenging Apple and Samsung that have been enjoying their duopoly in the smartphone market.
The company has announced tempting offers along with the smartphone to boost sales. However, there are skeptics questioning the success of the phone.
Prof. Mohan Sawhney of the Northwestern University who regularly studies Amazon’s strategies said, “Is it a good product and a neat idea? Yup. Will it be a success? Question mark”.
The company is aiming to get more people buy the device from Amazon said Michael Graham, an internet analyst. Using the Kindle line of tablets, the company had many users buy products from its online store by offering users, products at a subsidized price.
Buyers of the phone get an Amazon Prime membership worth $99 free for a year, which allows unlimited shipping to their location. Other freebies include a long list of digital music, movies, and television shows. Users also get unlimited storage on Amazon’s cloud which they can utilize to store photos taken using the phone.
On the other hand, offering free shipping would encourage users to search products on Amazon rather than the traditional way of buying from Google as using other services to ship the products they want may involve shipping costs.
However, Forrester analyst James McQuivey said that Amazon will be able to make a big splash only when it gains entry into the smartphone market successfully which is the tricky part. People who are used to Samsung and iDevices may not be willing to suddenly switch to Amazon just because it offers free shipping and music.
McQuivey said that Amazon’s strategies are “shrewd and calculated moves, and the phone in theory could be a tremendous extension of that strategy, but you’ve got to get people to want one.”