Amazon plans to launch a smartphone this fall, according to The Wall Street Journal (reported based on undisclosed sources in the SF and Seattle area who have seen the device).
A few common questions:
1) Will they succeed?
Well, it depends on Amazon’s definition of success.
Is it about media? Amazon is still somewhat new to developing, building, distributing, and supporting hardware. If this device adds to its portfolio of PC, Kindle, and Fire TV to be yet another screen for Prime subscribers, that may be enough. The notion of subsidized hardware to support an extended media play is interesting. My colleague James McQuivey leads our research there.
Is it about commerce? mCommerce is a big deal in mobile, but not a big deal within the broader context of consumer spending. Offline commerce dwarfs eCommerce and eCommerce dwarfs mCommerce. The big opportunity in mobile is the influence of sales locally. But Amazon also plays in this space.
Is it about payments? I’d say unlikely in the near term, but I like the idea of using my Amazon account (linked to my credit card) for quick and easy online payments. However, it’s hard to imagine the same level of convenience translated into the physical world – with the greatest possibility in mCommerce. My colleague Denee Carrington is our expert here.
2) Should you build on their platform?