This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

An Amazon Smartphone Won't Aim at Apple or Google

NEW YORK NEW YORK ( TheStreet) -- (AMZN - Get Report) has a smartphone waiting in the wings, according to a Bloomberg article titled "Amazon Said to Plan Smartphone to Vie With Apple."

But I doubt a new Amazon phone would take aim at Apple's (AAPL - Get Report) iPhone.

Jeff Bezos is not dumb enough to try and take down the top dog in mobile devices. I suspect a competition with Apple did not enter Bezos' mind when he decided to build the Kindle Fire tablet and that it isn't his plan with a smartphone either.

Amazon does what it does to further its related goals of getting current devotees of its ecosystem even more hooked and recruiting new members. Its strategy is all about boosting Amazon Prime, Subscribe & Save and sales of streaming media and MP3s -- its whole interconnected e-commerce scheme. Entrepreneur and blogger Jason Calacanis recently referred to this as the "Amazon Prime cult."

Amazon does not care about tablet or smartphone market share. In fact, I don't think Bezos really cares how many devices it sells. He probably only wants to know the effort is worthwhile.

For example, if Amazon breaks even on a Kindle Fire sale, perhaps it needs the person who bought it to spend a certain amount more through their Kindle or computer. If Amazon accomplishes that scenario millions of times over, it has won.

If it ends up No. 1 in tablets, all the better, as long as the tablet owners buy stuff from Amazon. If it ends up No. 23 in tablets, who cares, as long as the tablet owners buy stuff from Amazon.

A smartphone would serve the same purpose, if Amazon actually has plans for one. It would help tie the ecosystem together. You can access your Amazon store, Cloud Drive, your entire e-commerce life no matter where you are. Isn't that really the goal of every company in this always-connected and increasingly mobile world?

All of that said, I'm not convinced this is going to go down the way everybody thinks it will. While I see reason for a smartphone that would further tie together the ecosystem, you can argue it's really not necessary.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.24 0.00%
AMZN $367.32 -0.01%
FB $83.01 0.00%
GOOG $555.17 0.00%
TSLA $190.41 0.00%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs