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Amazon Gets Its New Smartphone Strategy Right

After the debacle that was the Fire Phone, Amazon is back in the smartphone business with what appears to be a winning strategy. Instead of developing their own devices, at significant expense, Amazon is partnering with manufacturers to replicate their Kindle and Fire tablet ad-serving, subsidized-hardware approach in addition to pre-loading the companies commerce and consumption apps. So they end up with a similar sort of footprint in this space from a far smaller investment. And, on the flip side, their smartphone partners (initially Blu and Motorola) secure a new and potentially meaningful distribution channel. The only potential fly in the ointment is they’ve started with low- to mid-end devices and it’s unclear (to the casual observer) what the “Prime” demographic might prefer. Amazon’s intent is, likely, also to expand Prime’s reach by making these phones exclusive to the $99/yr program.

Published by
Dave Zatz