Reports have it that Amazon will introduce a smart-phone later this year.
At first, I wasn’t sure of the strategy. But the more I thought about it, the more sense it makes.
First off, phones are where the money, profits and sales reside.
- Samsung reported record profits because of the 40-60% increase in phone sales.
- Apple makes more from it’s iPhones than Microsoft does from all their items.
Go anywhere people have to wait (train station, airport, DMV, before a movie begins). What are they doing? Most people are looking at their phones. Reading something, absorbing information, punching out text messages.
What does your smart-phone do for you?
- Facebook, Twitter, FourSquare,Instagram etc
- Restaurant guide
- Movie guide
- Text messages
- Clock (alarm too)
- Address Book
So why wouldn’t Amazon want to enter this game?
It is expensive. It will be entering a hardware game against the best in the world.
But Amazon has more customer names and credit card numbers than anyone. Amazon has the trust of the consumer. Amazon has always been about being where the customer is… and on their smart-phones is where they reside. Amazon generally knows what they are doing and I am sure they will carve out their niche in this hyper-competitive market.
Oh yeah, I can also make phone calls with my phone.