Rumors of a smartphone by Amazon.com, Inc. (NASDAQ:AMZN) did bring a lot of doubts with it regarding its success as the industry is flooded with numerous players. The consensus was that the industry did not seem to have anything new to offer and for the new players there was no scope of success. Despite all the apprehensions, Amazon released its first smartphone, the Fire Phone, and after a very long time we have one such device in the smartphone market that has “the potential to disrupt the smartphone status quo,” says a report from Forbes by Tony Bradley.
Competition no deterrent
The fact that Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) became the world leader in the search engines even though it entered the space quite late and that Apple acquired a substantial share of the smartphone market in the presence of other major rivals, proves that competition is no deterrent. Creating a distinguished product for the market right when it’s needed and before anyone else can think of, is what enables a company write a success story of its own, says the author.
Michael Mauboussin: Here’s what active managers can do
The debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More
Amazon has done the same with its flagship smartphone ‘The Fire Phone,’ making hardware competent with the likes of Apple iPhone 5s, Samsung Galaxy S5, or Nokia Lumia Icon. The RAM and processor of the device are very close to that of Galaxy S5. The screen size and the camera quality are, also, of good standards matching those of the rivals.
What makes Amazon Fire Phone unique?
Well, if all the features are no different than the other devices currently available then what sets it apart is the experience of using it, which is way ahead of its competitors that offer virtually identical look and feel, believe the author. What impresses a customer while making decisions and investing his or her hard earned money is not just the aesthetic aspects, but many others that include the fluidity of the OS, the convenience of use for the functions performed most often, the efficiency with which integration with the apps, tools, and services is performed by the underlying platform and so on. Author believes that Amazon Fire Phone has the potential in these areas “to provide a unique experience, and leave competitors in the dust.”
Also, brand reputation and customer loyalty of Amazon is a striking feature that could allure buyers. Along with these, Fire Phone has some unique features (Dynamic Perspective, Firefly, Mayday, and the Amazon Prime membership) that the make the Amazon gadget a “very compelling newcomer,” according to the author.