The following video is part of our "Motley Fool Conversations" series, in which Motley Fool senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss emerging trends in technology.
In today's edition, Eric and Jeremy look at reports that Amazon.com is readying a smartphone. With Amazon having rolled out the Kindle Fire, the company already has software in place that could easily transition to a smartphone. However, as Eric notes, the smartphone space might be a tougher nut for Amazon to crack. While the Kindle Fire has mainly succeeded by undercutting competitors' pricing, the subsidized nature whereby carriers subsidize the real cost of smartphones means that Amazon wouldn't be able to undercut pricing as dramatically in the space. Amazon isn't to be ignored, but its strengths look better tailored to the tablet space.
Eric Bleeker and Jeremy Phillips own shares of no companies listed above. The Motley Fool owns shares of Texas Instruments, Microsoft, Qualcomm, Apple, and Google. Motley Fool newsletter services have recommended buying shares of Google, Microsoft, Amazon.com, and Apple and creating bull call spread positions in Apple and Microsoft. Try any of our Foolish newsletter services free for 30 days. 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.