Amazon's Smartphone: Smart Play?
George Liu | Jul 08, 2012 04:58AM ET
It seems as if the continuing trend these days in the technology sector is to simply try and catch up to Apple (NASDAQ: AAPL). Take, for example, Microsoft's (NASDAQ: MSFT) attempt to enter the iPad-dominated tablet industry with its newly unveiled Microsoft Surface; although the tablet has some very useful features such as a snap-on keyboard, many analysts wonder if it can significantly boost Microsoft's bottom line and chip away at the market share of the iPad.
Indeed, a large part of the catching-up strategy is due to the success of Apple. Apple has been a juggernaut that has seen its stock soar 49.6% YTD and has been riding on the waves of huge growth in markets such as China. Of course, there have been setbacks for Apple; for one, it is constantly the target of lawsuits filed by its competitors and obscure Chinese companies. Also, fears have recently grown about notes , “Given that Amazon’s strategy is to treat devices as a content hub rather than a standalone product, it’s pretty likely that price points for the smartphone would be very aggressive.” In other words, an Amazon smartphone will most likely be a channel for accessing Amazon’s store and in turn open up significant revenue streams from smartphone users that would offset the hardware cost of the Amazon smartphone.
Granted, nothing about the development and sale of a smartphone has officially been confirmed by Amazon; however, all signs are pointing to it. If the rumors are true and Amazon is indeed creating a new smartphone, investors should definitely consider adding the company to their portfolios.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.