May 9, 2013
Take a deep breath, hold on to your hat, and take a seat: Amazon is building a smartphone.
Still there?
Sorry for the big shocker. Almost a year after reports that Amazon was testing smartphones in Asia, half a year after rumors Amazon was buying a smartphone chip processor, a year after more reports that Amazon was building its own smartphone, five months after unveiling a notifications system that would look really nice on a smartphone, and six months after probably wild speculation that Amazon was going to unveil a smartphone for the pre-Christmas shopping spree in 2012, there’s yet another report that Amazon is building a smartphone.
But this one has a 3D screen.
The Wall Street Journal says that Amazon is building at least two smartphones, including a high-end model with 3D graphics and retina-tracking technology so that users can navigate content by “using just their eyes.” Plus an audio-only “streaming content device.”
Harrumph.
Amazon is almost certainly working on a smartphone and almost certainly planning to release it in 2013. There’s just too much smoke for there not to be fire. And having made its bet on digital content being the growth engine of the company’s future success — 12 of the 15 highlights in Amazon’s recent earnings release were about digital content — a smartphone that makes use of Amazon’s recently expanded app store and burgeoning virtual shelves of ebooks, TV shows, movies, and all other forms of digital content makes way too much sense.
But a couple grains of salt.
Amazon hasn’t made its bones in the tablet market by offering the absolutely latest and greatest technology but by presenting a solid product at a rock-bottom price. So I’m a little skeptical about all the wild 3D speculation — especially because that could be a sweet datapoint plant for the company to identify leak sources. And, in reality, a company the size of Amazon, like Apple, is working on many different projects at any given time. Some of them will come to market, and some of them won’t.
One company that can’t be happy about Amazon impending smartphone plans, however, has to be Google. Amazon has essentially hijacked Android for its Kindle offerings, taking the open-source mobile operating system that Google has developed, stripping out the Google app store, Google apps, and Google branding, and replacing them with its own offerings. Amazon will doubtless adopt the exact same strategy with any smartphone play — as Samsung might as well.
And, given the fact that Kindle is probably the leading Android-based tablet, it has the potential to do well in smartphones as well.
Of course, incumbent leader in Android sales Samsung might have a thing or two to say about that.
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http://youtu.be/_hg7bYEZ6e8
http://youtu.be/jUtmOApIslE
Meet the all-new Kindle Fire—a Kindle for movies, music, apps, games, reading & more. Only $199.
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The new Kindle’s price point was clearly intended to move units like crazy, so one has to wonder why the discount on the previous model wasn’t more drastic. It seems possible that Amazon could slash prices closer to the holiday season in an attempt to own to the eReader market at all price points, but that would likely jeopardize sales of newer models.
Amazon could also be running low enough on existing Kindle stock that they’re in no rush to sell through them. Why sell a perfectly good Kindle for something like $50 when warehouse space isn’t an issue and people are more than happy to pay $99?
This is all speculation of course, but the point remains: those of you who prefer your Kindles with keyboards may want to head over to Amazon and check things out. After all, who knows how many more they have to sell?
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Amazon Says New Kindle Is Its Top-Selling Product » Amazon-Kindle-3-ereader
Giant online retailer Amazon.com announced Monday that the latest version of its popular Kindle e-reader has become the top-selling item in the company’s history — surpassing the previous champ,Harry Potter and the Deathly Hallows (Book 7).
On Christmas Day, Amazon said, more people activated new Kindles and bought more e-books than on any other day in the company’s history. Kindle (Wi-Fi) and Kindle 3G devices were the best-selling products on Amazon this holiday season, the company said.
As usual, Amazon did not say exactly how many Kindles the company has sold, but Forrester Research’s James McQuivey has estimated that by the end of the year, Amazon will have sold about 6 million units.
Company CEO Jeff Bezos did use the occasion to take a veiled shot at those who said that fancier tablet computers like Apple’s iPad and Samsung’s Android-powered Galaxy Tab — which are much more expensive than Kindles and offer more features — would crush Amazon’s signature e-reader. Not even one year ago, tech pundits were predicting Kindle’s demise at the hands of iPad.
“Customers report using their LCD tablets for games, movies and web browsing, and their Kindles for reading sessions,” Bezos said in a statement. “They report preferring Kindle for reading because it weighs less, eliminates battery anxiety with its month-long battery life, and has the advanced paper-like Pearl E Ink display that reduces eyestrain, doesn’t interfere with sleep patterns at bedtime, and works outside in direct sunlight, an important consideration, especially for vacation reading.”
“Kindle’s $139 price point is a key factor — it’s low enough that people don’t have to choose,” Bezos added.
To be sure, Monday’s announcement is almost entirely self-serving on the part of Bezos and Amazon, but you have to give the company some credit for managing to withstand the onslaught of smartphones and tablets that pose competitive threats to the Kindle.
The simple fact is, the product is a hit.
Ben Schachter, an analyst with Macquarie Research, believes that Amazon is poised to continue its strong performance.
“Amazon has rewarded the bulls and confounded the bears for years,” Schachter wrote in a recent note to clients, in which he initiated coverage of the company with an “Outperform” rating. “Through it all, very few would argue that the company’s execution has been anything other than remarkable. Even fewer would argue that the secular shift of retail to online from offline will abate.”
Schachter has a $205 price target on the stock, which closed trading Monday at $182.14.