Why Amazon's Fire Phone is Destined to be a Flophttp://www.fool.com/investing/general/2014/07/16/why-amazons-fire-phone-is-destined-to-be-a-flop.aspx Nihar Sheth
July 16, 2014
A few weeks ago, Amazon (NASDAQ: AMZN) announced its new Fire Phone. The Fire Phone will run on a modified version of Google's (NASDAQ: GOOG)(NASDAQ: GOOGL) Android OS known as Fire OS. The Fire Phone is likely to be a commercial flop because it is entering a market with too many established players with a lack of differentiating features and almost no industry brand name. Early sales are already pointing to a bleak future for the device.
An Expensive Phone to Join the High-End Smartphone Frenzy
Rather than releasing a low-cost phone or some other product that would sell to a different audience than existing high-end devices, Amazon chose to jump right into the frenzy. The Fire Phone is competing directly for market share with these established and highly successful smartphone makers.
The Fire Phone has a few features which Amazon hopes will help it stand out in the competitive marketplace. Dynamic Perspective, a sensor system which adapts to the way the user moves the phone, Firefly, a technology which easily identifies products, text, and music through pictures, and Mayday, a 24/7 live video help solution, are expected to drive sales.
Unwelcoming Market Prospects
However, the Fire Phone has an even bigger problem on its hands. This infographic explains it all: