A long period of guessing, speculations, leaks and lies came to an end when Amazon revealed its Fire phone this week. Now is the time to match the hype with features of the phone.
Here are some points, why I feel that Amazon has made mistakes while positioning their Fire phone in the smart phone market.
Fire OS vs Android vs iOS
Till now, Kindle fire has worked well and proved as a successful product in satisfying customers need but Kindle was positioned as an e-book reader and that’s why it was successful in creating a different space for itself and managed to stand apart from tablets or OS’ war. Now Amazon is entering in pure competition with other smartphones as well as OS’ and now Fire OS has to compete with other established OS’ like iOS and android not only in performance but in their apps strength, where it certainly lacks.
Apps
iOS and Android have a large apps base ranging over 1,000,000 while Fire as only 230,000 apps and number of apps supporting 3D feature is very low and that may be a drawback. So, in terms of services they are not offering or solving any existing problem. If they don’t come up with strong apps solution it will merely become an e-commerce phone.
Pricing
Amazon is known for their different pricing strategy, they want user to use their devices and then generate revenue. For that they offer device in lesser price and same strategy worked well with Kindle. For Fire phone they have introduced 32 GB and 64 GB variants and they are not offering 16 GB. Though their price for 32 GB is less than 32 GB iPhone price but they are not offering 16 GB. So, starting price for iPhone and Fire is same as 16 GB iPhone is same as 32 GB Fire. That’s why they are almost missing the opportunity to position their product as a less price offering than iPhone and S5.
May be after starting sales results, they come with 16 GB variant.
Vishwa Ratna Nigam
Telecom & Mobile Analyst
Good article. Many experts are seeing this phone as a 'purchase device which can also be used as a phone'. They will have to fight this perception else this phone can not become a challenger.
ReplyDeleteAmazon has started its e-shopping operations in India recently. So they have timed the entry of Fire very well. Let's see if they can pull it off.
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