Industry Analyst Jeff Kagan on Amazon.com Fire Phone Changing Strategy

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“The Amazon Fire phone was introduced last year and while it was not a big success, I believe they will keep trying until it is a success,” says Technology Industry Analyst Jeff Kagan

Jeff KAGAN, Industry Analyst

“The Amazon Fire phone was introduced last year and while it was not a big success, I believe they will keep trying until it is a success.” Says Technology Industry Analyst Jeff Kagan

What is the future of the Amazon.com Fire phone? asks FastCompany magazine in their Feb 2015 issue.

Industry analyst Jeff Kagan offers comment.

“Amazon.com had such high hopes for their new Fire phone. They thought it would transform the wireless industry and their mail order business. They were wrong, at least so far. But don’t count them out. I think Amazon.com will continue to work on the Fire phone until it becomes a success because of one key reason,” says Wireless Analyst Jeff Kagan.

“Amazon.com sees the Fire phone as more than just a smartphone competitor to the iPhone or Android. They see it as a way to increase sales from Amazon.com. They know when customers think about ordering something, if they are near a computer all they have to do is click a few times and the product is on the way. On the other hand when customers are out and have to wait to get back to their computer, they often either change their mind or forget. That is a loss that Amazon wants to fix,” says Technology Analyst Kagan.

Not every competitor in the smartphone space succeeds. In fact very few actually succeed. Apple iPhone and Google Android like the Samsung Galaxy have the vast majority of market share. Others are in the low single digits.

The Facebook phone was an example of a smartphone flop two years ago. This is a company who wanted to compete with the Apple iPhone and Google Android, but fell on it’s face in very short order.

The Amazon.com Fire phone is different from the Facebook phone disaster. They are less interested in competing with other smartphone makers and more interested in using the Fire phone to increase sales at Amazon.com

“This is the main reason why the Amazon.com Fire phone story is not over. They will keep on trying to improve it until it becomes exactly what they want… a popular smartphone for Amazon.com customers to use to buy more stuff,” says Tech Analyst Kagan.

“When I give speeches on marketing and positioning, I often talk about this Amazon.com Fire phone story. How a year ago just before Amazon.com announced their Fire phone, everyone was talking. I wrote about it several times and was quickly asked by Amazon to stop. Imagine that. And I thought that if anything all this attention was helping them. However Amazon.com likes to stay in the drivers seat,” says Kagan.

“That obsession can be costly. No one did stop however. There was plenty of talk about how funny it was to hear a company asking the analyst and media community to stop talking and thinking and writing about them. You would think that would be exactly what any company would want, right?” says Telecom Analyst Kagan.

“So Amazon.com is stumbling around right now trying to figure out why the first Fire phone was a flop. I fully expect to see Fire Phone 2 coming out later this year,” says Kagan.

“There are no guarantees that Amazon.com will be successful with the Fire phone. However I don’t expect them to walk away quickly either. This is something they will spend plenty of time tweaking and trying to make successful. The reason is it will help them sell more stuff on Amazon.com. So stay tuned,” says Kagan.

About Jeff Kagan

Jeff Kagan is an industry analyst, consultant, columnist, influencer, author, keynote speaker and futurist.

He shares his opinion and views in many different ways over 25 years. His goal is to help you better understand our changing industry, technology and competition.

Kagan is quoted by the media daily. He writes two weekly columns and a daily press release on companies, technologies, competition and the changing industry. He is also a keynote speaker and author.

He follows and offers comment on wireless, telecom, Internet, cable television, IPTV and other tech news stories including Mobile Pay, Cloud, Internet of Things or IoT, M2M and more.

Kagan is a key influencer known as a Technology Analyst, Tech Analyst, Wireless Analyst, Cloud Analyst, Smartphone Analyst, Telecom Analyst, Telecom Industry Analyst and Principal Analyst.

His speeches are on topics including State of the Industry, challenges and opportunities, changing technology, competition, services, winners and losers, why and what we can expect going forward.

Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.

Companies and Clients: Contact Jeff Kagan to discuss setting up an “analyst briefing” or becoming a consulting client.

Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.

Visit his website: at jeffKAGAN.com to learn more.

Full Disclosure: Jeff Kagan is an independent industry analyst. He offers comment to the media on breaking news, announcements, technologies and the changing marketplace. He also writes columns and press releases offering comment, and is an author and speaker. Kagan earns income as a consultant, analyst, speaker and author.

Twitter: Follow him at @jeffkagan

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