Amazon.com may launch a smartphone, which would mean the world’s largest e-commerce company would join the mobile phone sector just after Microsoft and Google did. All of the new offerings from these firms move into a market already dominated by Apple and Samsung, and one which is crowded by second-tier companies such as HTC, Motorola and Sony . It would appear that Amazon has decided to take a long shot, which is extremely risky. That risk could be offset by the view of Amazon management that the company cannot be left behind in one of the hottest markets in the world.
Amazon already has one of the best-selling tablet PCs. It Kindle Fire leveraged the success of the Kindle e-reader. And Amazon has the advantage of its e-commerce site, which is visited by hundreds of millions of people. The Amazon brand has expanded well beyond books and has overwhelmed parts of the consumer electronics and media businesses. That means its leverage in smartphones is larger than it may seem at first.
Accomplishment in the smartphone industry is based on at least three things, and Amazon already has had some success in each. The first is the capacity to deliver a large array products for smartphones. For companies like Apple, this is software applications. For Amazon, it is media and potential special access to its e-commerce platform.
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