Amazon 3D Phone: Will It Succeed In Overcrowded Market?

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Amazon.com, Inc. (NASDAQ:AMZN) is widely expected to launch a 3D smartphone at a Seattle event on Wednesday, June 18. It will mark the online retail giant’s entry into the fiercely competitive smartphone market dominated by Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). Will Amazon phone’s holographic 3D interface will enough to woo customers?

Amazon 3D smartphone’s interface to resemble Windows Phone tile system

Let’s first have a look at the smartphone’s features. Leaked details and images of the smartphone suggest that the device will have four infrared cameras to provider the 3D experience. These cameras will track the position of your face and eyes, and allow the software to make adjustments to elements on the screen. Amazon.com, Inc. (NASDAQ:AMZN)’s phone is expected to feature a 4.7-inch display with 720p HD resolution.

The phone’s interface will reportedly resemble the tile menu system of Windows Phone. Other rumored features include a highly customized version of Android OS, 2GB RAM, and a Snapdragon processor. Recently, reports surfaced that Amazon.com, Inc. (NASDAQ:AMZN) has struck a deal with AT&T Inc. (NYSE:T) to exclusively carry the phone upon launch.

What purpose would Amazon’s 3D smartphone serve?

Amazon.com, Inc. (NASDAQ:AMZN) is unlikely to go after Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) with its new 3D smartphone. Cathy Boyle, a senior analyst at eMarketer, believes that the online retailer’s new device will target mobile retail sales, mobile content and advertising. It will serve the purpose of promoting the company’s online marketplace through better imagery.

Gartner analyst Bill Menezes says that a 3D image of a jacket or sneakers will allow online shoppers to see all the features earlier. Users who need to go furniture shopping could scan their living room to make a 3D rendering. And they can take a picture of the product and insert it into the 3D rendering to see how it fits. Gaming is another area that Amazon.com, Inc. (NASDAQ:AMZN) might have in its mind. A 3D interface could offer users a more robust gaming experience through Amazon Game Studio.

Will Amazon’s new smartphone challenge Apple and Samsung?

Amazon.com, Inc. (NASDAQ:AMZN) has never made a smartphone before. But the massive success of its Kindle devices and the recent release of Fire TV prove that the company does make an impact on its intended market when it puts its weight behind a hardware. Moreover, the Seattle-based company is exceptional at refining its products over time to exceed consumer expectations. If Kindle can change the way we read books digitally, its holographic smartphone can change the way we look at phones. Even if the device fails to make a dent in Apple Inc.(NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s dominance, it should succeed in attracting online shoppers.

Amazon.com, Inc. (NASDAQ:AMZN) shares gained 0.71% to $327.94 in pre-market trading Wednesday.

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