Amazon Unveils Its Smartphone Tomorrow

Can the e-commerce giant's ambitious new smartphone truly be a game changer?

Jun 17, 2014 at 5:00PM

Tomorrow is the day of's (NASDAQ:AMZN) smartphone event. The rumored device is expected to feature an innovative 3-D interface that uses a new head-tracking sensor to create a stereoscopic view of the interface. The company could potentially use that to offer a unique shopping experience.

Chances are that Amazon's phone will be free on contract after carrier subsidies come into the equation. Amazon loves pricing very aggressively, but $0 is as low as it can go. That's one reason why Amazon may have a hard time competing in smartphones -- because the market is already very competitive. Amazon still lags Apple and Google in total apps, although it recently announced that it now has 240,000 apps and games available in its Appstore for Android.

AT&T (NYSE:T) will reportedly be the exclusive carrier of the device. That also makes sense, because AT&T has a Sponsored Data program that would allow Amazon to pay data fees related to its services, such as the freshly unveiled Prime Music. Amazon will likely use its phone as a way to sell Prime subscriptions.

In this segment of Tech Teardown, Erin Kennedy discusses Amazon's smartphone ambitions with Evan Niu, CFA.

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Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. Evan Niu, CFA has the following options: short January 2015 $280 puts on and long January 2015 $250 puts on The Motley Fool recommends, Apple, Google (A shares), and Google (C shares). The Motley Fool owns shares of, Apple, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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