Why is Amazon so late in launching a smartphone?
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From the product comparison, Amazon's tablet was launched early; from the timeline, Amazon released smartphones later than most companies. Why didn't Amazon launch mobile phones earlier? Why did it insist on launching smartphones at this time? Amazon officially released the Fire Phone in the early morning of Beijing time. It is equipped with a 4.7-inch 720p display, a 2.2GHz quad-core processor, 2GB RAM, a rear 13-megapixel camera and four front cameras. In terms of pricing, the 32GB version of the Fire Phone is priced at US$649, and the 64GB version is priced at US$749. Although the dynamic 3D function has attracted attention, the service is the real highlight of the Fire Phone, including the real-time online video help service MayDay, the photo scanning and recognition service FireFly, etc. It should be said that the features and pricing of Amazon's smartphone products are a bit unexpected, from which we can see that Amazon may have the following reasons for launching smartphones: 1. Strategically: Amazon must launch mobile phone products. Smartphones can become an important new channel for Amazon. In the past few years, Amazon has invested tens of billions of dollars to build multiple business units: building warehouses around the world; developing tablets and set-top boxes; producing and licensing digital media content and storing them in its own devices. But neither tablets nor set-top boxes are as important as smartphones, which sell 1 billion units a year. With the development of mobile Internet, people spend more time on smartphones. According to market research firm eMarketer, Americans spend 2 hours and 51 minutes a day on smartphones, half an hour more than on PCs. Therefore, Amazon, whose core business is e-commerce, has a growing sense of crisis. Although it has fallen far behind other mobile phone manufacturers, Amazon still insists on launching smartphones and using embedded services to achieve a closed loop of its own business. 2. Business: It can directly increase Amazon's revenue In mobile phone sales, Amazon has some advantages that other mobile phone manufacturers do not have: it can sell mobile phones to 250 million users on its own without going through middlemen. Amazon's special services and functions can help it build a differentiated competitive advantage, allowing it to "share a piece of the pie" in the fiercely competitive smartphone market. Amazon's smartphones are priced at $649 and $749 respectively. Assuming that Amazon can grab 1% of the market share, it will sell about 10 million smartphones. This business will bring Amazon more than $6 billion in revenue. 3. Capital: Amazon needs a new business story to win the support of investors Another reason that Amazon may not admit may be to please investors. Although Bezos has always disdained this move, it is undeniable that Wall Street's enthusiasm for Amazon has gradually declined since this year. Compared with the stock price at the beginning of the year, Amazon's stock price has fallen by more than 15%. Amazon hopes that the plan to launch smartphones can support its great business empire concept - thereby winning investors to continue to support this giant with huge revenue but continuous losses. In the latest trading day of the US stock market that just closed, Amazon's stock price rose by $8.76, an increase of 2.69%, to close at $334.38, basically returning to a one-month high. Investors are obviously welcoming Amazon's release of smartphone products. 4. Execution: Amazon's mobile phone strategy is difficult to advance Amazon is not deliberately missing the opportunity and is unwilling to release mobile phone products as soon as possible. According to foreign media reports, Amazon's mobile phone strategy was launched five years ago, but the main reason for the delay in launching the mobile phone is the immature technology. As mentioned above, Amazon's launch of smartphone products is not simply to release a hardware, but to better connect its multiple businesses. Therefore, in terms of functions and requirements, this product is more complex and special than other manufacturers' products. Amazon borrowed the function of Nintendo Wii game console that can track the player's head movement. However, during the development process, Amazon's secret laboratory Lab126, which is responsible for developing mobile phone products, found that the original plan to use multiple cameras on the mobile phone to view the user's holding posture and create a 3D effect was difficult to achieve, and the mobile phone camera became difficult to work effectively when the user's hand was shaking. In the end, Amazon CEO Bezos personally intervened in the project last summer to accelerate the process. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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