Amazon to Launch SmartPhone on 18th – Will UnderCut Premium Android Mobiles ?

Amazon SmartPhoneAccording press invites, the long-rumored Amazon SmartPhone is finally about to be launched. From the teaser video, it looks like speculation about a 3D motion-responsive interface is likely correct. We have long believed that Amazon would make a phone, given the company’s focus on growing the ecosystem. It will join Amazon’s other hardware as a means to drive more users into the Amazon ecosystem. It will also likely have Amazon’s forked version of Android. The other key issues will be its price, potential Amazon Prime connection, and carrier / geographic availability.

Pricing of Amazon SmartPhone to Undercut Samsung and Other Premium Android mobiles ?
Amazon is expected to live by its mantra of premium products at non-premium price (likely selling it at ~cost). While we don’t want to guess at an exact price point, it is very likely to undercut most current high-end devices, including the iPhone 5S and Galaxy S5, as well as upcoming new high-end.

Integration with Amazon Services ?
It is possible that Amazon will launch the phone in connection with a new Prime offering. They could also bundle the phone with Prime and offer new monthly or annual prices. The pitch would be that Prime + Phone = 2-day shipping, videos, books, apps, along with voice, data, and text or something akin to it.

Initial estimates of Amazon Android Smartphone is expected to be low compared to Apple. The bottom line is that The Great Ecosystem War has begun and Amazon wants to compete directly against Apple, Microsoft and Google. Phones represent yet another front in this war. In our view, this ecosystem war is the biggest issue impacting tech companies today. While Apple and Google are the clear leaders in the mobile segment, this is going to be a long, hard war with many battles across phones, TVs, laptops, hybrids, tablets, cars, home automation, robotics, wearables, and much more.

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