Amazon Smart Phone Fire Won’t Burn as Bright as Its Tablet
It has been a big year for Amazon with devices if the rumor mill is appropriate we could be seeing a Android phone before a long time.
The online conglomerate launched the highly subsidized Kindle Fire in October 2011 to some globally receptive audience.
Around 50,000 tablets were ordered worldwide with Amazon increasing to meet global demand.
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A big reason for stronger demand include the tablet’s perceived value for money.
With most big-name technology brands charging $200 + for tablets the Android-powered Amazon kindle fire was a very affordable 199 dollars
The retail price was in fact so low that Amazon developed a loss of around 20 USD on each tablet they sold.
Their intention was for Amazon to generate income back on media sales, a practice that they have succeeded with with their e-reader Amazon Kindle.
And if rumors are correct then they’ll be using a similar model for their phones.
Reports out of Taiwan suggest the Amazon Fire phone will likely be launched in early 2012 and may cost between 150 US to 160 with manufacturing costs being placed somewhere between 130 and 180 US dollars per unit.
The rumors of the Android smart phone has been welcomed by stock markets with Wall Street analysts predicting that this stock price could go as much as 233 US dollars per share. But will it be one that actually does result in the company money?
Chances are somewhat unlikely and yes it comes down to the differences involving the phone and the tablet and just how they are used.
The tablet, while portable, will be a lot larger than the phone and is mostly used like a device to read books magazines and comics, see the internet, watch TV and movies and essentially consume media.
The device is a communication device. Its limited battery life and smaller screen means that you’re not going to be reading many books on there, you might play a few games but you’re prone to get a lot more of an ‘playing life’ from a game than a book or video.
What this essentially means is always that phones won’t be the big cash cow that could be continuously milked for sales that e-books and tablets will likely be and that’s even before you start to consider the competition.
The Kindle Fire was hailed to revolutionary because it was the 1st time any of the ‘big names’ had put out a sub $200 tablet. The only competition was from Chinese tablet makers and from some reports some Chinese electronics brands were making inroads into western markets about the back of the sales.
The same can’t be said for the mobile phone market where there are several discount Android smartphone offerings and competitors are very stiff.
While the success of the Amazon phone might not be rosy for Amazon it’s good news for consumers.
It’s one more brand name entry at the lower end of the market, and that will only encourage Android mobile phone makers to either cut prices or help the performance of lower-end models.
Which has to be good news for shoppers.
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