The Fire
Phone is a smartphone designed and developed by Amazon. It was launched on June
18, 2014. Loaded with several features such as Dynamic Perspective,
Firefly. Amazon claims that it helps users see and interact with the world
through a lens. Other two key main features for this phone are eye-catching 3D
(well, not sure if 3D is eye catching anymore) and deeply integrated Amazon
buying features, where Amazon thinks to capitalize heavily.
The device
features a 4.7 –inch HD display, a size ideal for single-handed use. An ambient
light sensor and a feature called Dynamic Image contrast to make the screen
images looks perfect in various viewing situations. Gorilla Glass 3 is
available from front and back with 720p resolution. It comes with front and
back cameras, which can capture video in 1080p and Dolby Digital Plus surround
speaker’s audio. The Fire Phone is an AT&T exclusive, costing $199.99 with
two-year contract or $649.99 off contract price.
What it
looks like is Amazon’s main strategy behind this phone is not making the money
on selling the phone but selling entire Amazon business through the phone,
quite a clever strategy. Amazon is already coming up with marketing plans to
reach out many consumers on the day one it goes on sale. One such offer is
one-year Amazon Prime service, which is another marketing gimmick; but does
anyone need this as many hardcore Amazon customers do already have the prime
membership?
One key
missing feature is mainstream customers will not be able to access the Google
Play store, a major blow for customers who are very savvy of millions of new
apps. Amazon for obvious reasons would like to sell all content through
Amazon’s app store and build an echo system. But in reality, Amazon barely has
250,000 apps, which is just a fraction of the apps on iOS and Google Play (1.2
million apps). As a result customers who have substantially invested in either
of these echo systems will not be interested in the Fire Phone. Even new customers
will be hesitant to buy the phone if it does not run the key apps they are
interested in.
Deep
integration of buying needs in the phone is not something the customer is
really looking for, buy almost everything on web feature comes along even with
iPhone and android phones as well. They have already developed superior
Amazon and other Amazon specific apps.
Looking at
these factors and already saturated smart phone market where two dinosaurs
iPhone and Samsung being in the leaderboard, most likely the Fire phone will
not be a hit. According to early reviews, regardless of the bells and whistles,
Amazon is walking down on a difficult path. The Fire Phone is available only
through AT&T and many are not happy with AT&T due to weak signal and
price is also not competitive. Battery life is average and may last just one
full day as long as no Dynamic Perspective and Firefly features are activated.
The big
question now is whether the strategic rationale behind the Fire Phone in theory
is solid but will it play out in practical? The irony is Amazon likely doesn’t
know, and matter of fact we will likely never know, because Amazon usually
doesn’t share any of their sales data. If the sales still exist even after a
year from now, and especially if it gets a successor, then we will say that
Amazon has succeeded. If it gets quietly discontinued, then it has failed. Time
will tell us.
Good
luck Fire Phone and good luck Amazon.
