Last week
Amazon announced that they are getting into the smartphone business. This was hardly a surprise for most savvy tech
industry watchers. The company had been
dropping hints for weeks. The new Fire Phone has a few innovative features
like a multiple lens camera system that makes your photos look 3-D. The screen is also 3D and a tad larger than
the iPhone 5 screen. It is not the
camera or improved screen or any other smartphone feature that sets this new
phone apart from the competition. Rather,
it is how the phone communicates with “mother ship Amazon.” The phone is designed from the bottom up to
assist you in making purchases from Amazon.
It is no
secret that Amazon wants to be the place that everyone buys everything. No longer do they offer only books, DVDs and
cool electronics. For several years the
company has continually expanded their inventory to a level which rivals
Wal*Mart. They even have experimented
with selling groceries online with same day delivery.
The managers
at Amazon have taken to a new level one of the most widely successful marketing
and sales tactics ever developed.
Companies like Gillette and Kodak have for more than 50 years used the
sale of one product to enhance the sale of other products. The tactic generates
enhanced revenue by requiring the consumer to make many repeat purchases. Kodak was one of the first to perfect this
concept. They practically gave their
cameras away. They knew that the buyer
would need to continue to get film and processing. Gillette did the same with razors. Even today, a new high tech razor costs less
than single package of replacement blades.
This same strategy was embraced by Ink Jet printer manufactures. A trip to Office Depot will demonstrate the
effectiveness of offering inexpensive hardware and charging an arm and a leg
for an ounce of ink.
For those
who use a Kindle, you already know how simple it is to order a book. It is a “one click” process. I know that I have purchased several books
that if I would not have purchased if I had gone through the traditional online
shopping process. Once Amazon has your
personal information, you can buy most anything in a few seconds.
The Kindle
Fire tablet is another Amazon product aimed at getting you to be tethered to
the company. Amazon brought out the
Fire right after the launch of the iPad.
They did not try to compete directly with the iPad. Rather they designed
the Fire to be an easy way to buy and watch videos, programs and movies. Of course all could be found in the Amazon
Library.
So the new
Fire Phone follows this tradition of products that get you hooked on other
products. The phone has several features
that are designed expressly to help you spend money with Amazon. For example there is an app that allows you
to take a picture of most any item. The
item is recognized by the phone and you are provided a web page that offers to
sell you that item. One click, and it is
on a UPS truck heading for your home. Of
course your credit card is charged just as quickly.
Over the
years Amazon has made very prudent business decisions. Their most recent entry into an already
crowded smartphone market will be watched closely by tech and Wall Street
analysts. Seems to me that as a phone,
the new Fire Phone is nothing get too excited about. Will enough people want that easy access to
buying stuff? That is the big question. Maybe I will ask Siri!
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