Tuesday, June 17, 2014

Tomorrow's Amazon Announcement

It is expected to be announced tomorrow that Amazon will extend its communication footprint past the tablet to now include its own smartphone.  How this handset differentiates itself from Apple and Android based phones remains to be seen.  One rumor is that the screen will deliver a 3D like experience.  Whether that proves valuable to the consumer remains to be seen.  It hasn't worked with past products, from gaming systems to HDTVs, but perhaps the timing and the technology is finally right.

The other news is that AT&T will be the exclusive carrier for the new Amazon phone.   Of course, the primary use of the phone is calling and texting, but consumers also like a large library of apps for games, news, weather, video, music, and other needs.  Amazon might just have its own app that further eases the transaction process along with easy access for Amazon Prime customers to all its subscription services.  Along with subscription and advertising, e-commerce is the third leg of revenue streams that Amazon continues to conquer. 

Its certainly been a long time since Apple first did its iPhone exclusive deal with AT&T; now the iPhone can work on almost every carrier.  Loyal Amazon customers could follow a similar path.  And should the product prove highly desirable, could give AT&T a nice bump in subscription.

Tomorrow's Amazon announcement could be broader than just a phone.  Updating its Kindle line of tablets, e-readers, and Fire set top box, and creating a stronger synergy of its product line could be viewed very positively by consumers and investors.  Integration, communication, and commerce could just be the buzzwords we hear by CEO Jeff Bezos. 

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