The Amazon.com, Inc. (NASDAQ:AMZN) effort to enter the smartphone market has been interesting, and the company’s phone hasn’t even landed on deck. An advertisement for the Fire phone was release today and, to the surprise of many, few of the device’s more interesting features were even mentioned. The most important attribute of the phone, according to the commercial, is access to Amazon Prime.
The commercial features two children talking about what they’re going to do with their Amazon.com, Inc. (NASDAQ:AMZN) smartphones. Their plans offer a slice of what Prime has to offer with identifiable properties like The Hunger Games, Minecraft, and Skyfall all making an appearance. The ad says more about the amazing media abilities of Amazon Prime and leaves aside the more interesting features of the company’s smartphone.
Amazon Fire phone heads for release
The Amazon.com, Inc. (NASDAQ:AMZN) Fire phone is set to hit retail shelves on July 25, and the smartphone’s 3D interface and other unique features are certainly attractive to some consumers. Nobody is sure exactly what Amazon is aiming for with the phone release, but with its first advertisement the company may have shown its hand.
With the release of the smartphone creeping closer, the Amazon.com, Inc. (NASDAQ:AMZN) strategy is beginning to become more clear. Perhaps the phone is, like its Kindle contemporaries, selling at little or no margin. The company’s efforts are, as they were with its tablets and e-reader, working to create an advertisement rather than a real profit earning profit.
Amazon is still all about subscription
Even though Amazon.com, Inc. (NASDAQ:AMZN) is becoming more and more of a hardware company in recent years, and almost all of its revenue comes from its retail arm, the company has been pushing its Amazon Prime service for a long time, and it’s desperate to get your $99-per-year subscription.
Amazon Prime offers many benefits, and the company’s future may rest on everyone who does business with them becoming a member of the company’s amazing network. The Kindle Fire, and the multitude of successors it spawned, were all about media consumption. The Amazon.com Inc. (NASDAQ:AMZN) Fire phone may be about the same thing.
If Amazon is using the Fire phone to sell more subscriptions to the company’s Prime service, the firm’s shareholders won’t see a profit until next year at the earliest. Each Amazon Fire phone comes with a twelve month subscription to the service. That means that the company may be in for a slew of interesting earnings presentations as it tries, yet again, to convince investors to look to the future as Jeff Bezos tries to take over the world.