This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

An Amazon Smartphone: Bezos Will Have a Lot of Questions to Answer

Amazon's Kindle Fire is a good product and has sold well compared to Apple's iPad, but Apple is the only one of the two making any money on tablets.

Although Amazon's Prime movie streaming service has proven a worthwhile alternative (I won't say threat) to Netflix (NFLX), it is the latter that is steadily gaining momentum in the U.S. and in international markets.

In April, while citing anonymous sources, The Wall Street Journal reported that Amazon would begin selling a phone in September. This is the same expected timeframe for the release of Apple's iPhone 6.

Both companies have heightened their rivalry in recent years, which began with Amazon's launch of the Kindle Fire. But the so-called "digital gateway," offering consumers music, books, movies and apps is the new battleground. And Bezos apparently doesn't want Amazon to rely on any other hardware but its own.

How much will the phones cost? Will they be sold at a loss like the Kindle Fire? Will Bezos restrict sales of its phones to its Web site or will they be made available elsewhere?

Apple partners with wireless carriers such as Verizon (VZ), AT&T (T) and Sprint (S). Will Amazon be forced to strike similar deals if it hopes to gain share in content distribution?

All told, there are more questions with an Amazon phone than there are answers. Investors betting on the stock, which is still expensive, should hope that Bezos can answer these questions when he's called.

At the time of publication, the author was long AAPL.


This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Read More: Will the eBay Password Breach Finally Scare Off Investors?

>>Read More: Two New Summer Toys All Urban Millennials Should Crave

2 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!
SYM TRADE IT LAST %CHG
AMZN $380.16 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%
TSLA $203.34 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

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