For Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN) is just another competitor in the smartphone market. The online retail giant unveiled its Fire Phone with 3D interface on Wednesday. The device boasts of a 2GB RAM, 4.7-inch display, a quad-core Snapdragon processor, and 13-MP main camera with optical image stabilization. Its pricing starts at $199, according to the retailer’s website.
Amazon not threat to Apple
Is that a real threat to Apple Inc. (NASDAQ:AAPL)? No, says Cantor Fitzgerald analyst Brian J. White. The research firm has a Buy rating on the iPhone maker with $111 price target. Mr. White says Fire Phone may receive plenty of media coverage, but it’s unlikely to have any impact on the iPhones. History proves that entering the mobile device market is tough.
Amazon.com, Inc. (NASDAQ:AMZN)’s announcement represents yet another attempt by an Internet company to enter the mobile device market. And Apple Inc. (NASDAQ:AAPL) has remained unscathed. For instance, there are a big hype when Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) decided to launch its own smartphone with Nexus One in 2010. Then Google announced to buy Motorola Mobility in 2012 and brought Moto X. Finally, the search engine giant sold its Motorola Business to China’s Lenovo Group Limited (ADR) (OTCMKTS:LNVGY) (HKG:0992).
Fire Phone may challenge some Android vendors but not Apple
In 2012, Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) unveiled its Nexus 7 tablet, and Microsoft Corporation (NASDAQ:MSFT) came up with the Surface tablet to challenge the iPad. Neither of them were a success, says Cantor Fitzgerald. Amazon.com, Inc. (NASDAQ:AMZN) forayed into the tablet space in 2011 with Kindle Fire, which was dubbed as the “iPad Killer.” But today we know that its impact on Apple Inc. (NASDAQ:AAPL) is almost non-existent. According to research firm IDC, Amazon held just 4.5% of the global tablet market in 2013.
Cantor Fitzgerald says the Fire Phone could have some impact on the Android vendors. But it won’t affect Apple Inc. (NASDAQ:AAPL). The upcoming big-screen iPhone 6 (4.7-inch and 5.5-inch) will be tough to compete with. Apple’s market share is small, but it rules the higher-end segment.
Apple Inc. (NASDAQ:AAPL) shares inched up 0.38% to $92.53 in pre-market trading Thursday.