Apps & Software

Amazon's Smartphone Can't Compete With Apple and Samsung

Smartphone penetration among the U.S. population currently stands at about two-thirds. These devices are universally available for prices that are as low as free, so people who without smartphones almost certainly do not want one or cannot afford one.

Amazon.com Inc. (NASDAQ: AMZN) plans to release its own smartphone as a means to form a closer relationship with its customers, most analysts believe. This assumes that people who use Amazon’s e-commerce service, buy and read books on electronic devices, or use its movie and music service are more likely to do so on an Amazon device. However, the Amazon Appstore and its Kindle and multimedia apps already are loaded onto most smartphones, which makes the need for an Amazon product unnecessary in most cases.

Smartphone penetration has stopped growing at a rapid pace. According to comScore data, the growth rate has slowed to about 2% a quarter. Just as important, the same research shows that Apple Inc. (NASDAQ: AAPL) and Samsung have 93% of the market, which makes the chances that another product can do well very unlikely.

ALSO READ: America’s Most Popular Products

Amazon, despite its powerful brand and army of services, might learn something from HTC and Motorola. Each has the resources to build smartphones with most or all of the features that Apple and Samsung products have. Each has access to major smartphone retail stores. Each has the capacity to spend large sums of money on marketing.

Optimists about the prospects of an Amazon smartphone could argue that its sales will mimic those of the Kindle and Kindle Fire. However, these products were released at the beginning of the popularity of e-reader and tablets. The Amazon smartphone will be released as the cycle of rapid growth in the smartphone industry ends.

Amazon will bank on its brand and tremendous access to tens of millions of customers through Amazon.com. However, most of these people already have a smartphone that they use for Amazon services.

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.