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Cheap Policy is not effective enough for Amazon

Posted Jul 16 2012 3:11am

Beijing time on July 15, United States Science and technology site eWeek wrote a report on Friday, although Amazon got the success in the tablet computer market, the online retailer should not enter the Smartphone market, and lists the cheapest policy is unlikely to top 10 reasons.

Multiple reports and speculated that showed that Amazon is planning to enter the Smartphone market. The online retailer first enters the Smartphone market this year, improving existing Kindle Fire product line. As far as the message, Amazon does not indicate that they will further expand the mobile area, has not even confirmed that it would enter the Smartphone market. Even many analysts and industry observers believe that it is only a matter of time.

For Amazon, but that they should not enter the Smartphone market. If measured by the success of the Apple iPhone, a smart market is in a good area, but not all companies were Apple. Also, Amazon has learned it in field of Tablet, Apple products and competition are a very difficult thing. At that point, Amazon would do well to stick to Tablet, retailing and services, intelligent machine left to other manufacturers in the market.Here's what Amazon should not enter the Smartphone market top 10 reasons:

1. cheap policy serves a useful purpose.

In the Tablet market, Amazon can stand out with cheap equipment, because the Tablet is a luxury device. But smartphones are necessities of life, consumers often want to buy the best products. Even more important is that in the minds of many consumers, the best smartphone is iPhone--a two-year contract price of USD 200 product. Simply put, in the smart phone market, cheap price does not played too large a role. What is more, Apple iphone5 is coming, more and more iphone fans are looking forward it, even many people have bought iphone5 accessories in best case mall, such as leather cases for iphone, stylish cases for iphone, cool cases for iphone and son.

2. intelligent machines is not a Tablet

Amazon does know the tablet computer, which is why they are able to succeed. But the Smartphone market is more competitive, but also has different rules. Amazon needs to maintain good relations with operators, so that the latter will market their product as possible. Competition in the Smartphone market with the larger Tablet difference between difficulty than the latter.

3. Amazon not good at design.

It should be noted that there is a very important factor is that Amazon was able to stand out by virtue of cheap Tablet PC, is because consumers are willing to give up high-quality design. Taking into account the Smartphone market is much different, the design is King. But the problem is, Amazon still does not show that they really know how to design high quality.

4. the need to support 4G LTE

Taking into account the Amazon may follow the example of Tablet on the Smartphone strategy, they might give up some key features, which may include 4G LTE network. Looking to the future, 4G LTE is definitely smart machines must have features, but if the products like Amazon Kindle smart phone is missing this feature, the future will certainly suffer in big trouble.

5.Android systems

Kindle Fire is the key to the success of don't even know that it is running Android system for consumers, but Amazon will take on the Smartphone product the same policy is not known at this time. After all, Google is now strongly promoting "jelly bean" Android 4.1 system, consumers may want to Amazon Smartphone running some of the features of the system. If Amazon does not do so, may cause damage to them.

6. the time was not right

Some reported that Amazon will put on sale its smart phone products at the end of this year. If that it is the case, Amazon will get into trouble. Because Apple will be released in October, iPhone 5, Amazon does not want to see is the direct confrontation with the iPhone, but it is unfortunate that Amazon may not be able to escape this robbery.

7. the lack of long-term strategy

Due to development of cheap equipment, Amazon does not seem to be ready for the establishment of a comprehensive, long-term strategy, but rather focus on binding outdated components to sell products cheaper, this strategy was no doubt shortsighted. In the smart phone market, Enterprise general development policy for many years, short-term policy is not very useful.

8. the service is not the first

Amazon can sell products cheaper part of its purpose that is to sell their service. The online retail companies believe that, the more consumers to register their service, the better. In the Tablet market, this one may still can do it. But in the Smartphone market, Amazon needs to remember that is, the only way to enable consumers to purchase equipment and with a two-year initiative is, let consumers prefer mobile phone. Amazon reverse lines, this is a mistake.

9. location is unknown

In the Amazon before the final into the Smartphone market, the company needed a positioning themselves, identify their policy impetus. Amazon is a retail company that provides hardware? Is also a hardware company that provides online services? Amazon does not seem to know. If they clear this point, they might turn away from the Smartphone market.

10. too many hardware

Amazon needs to be vigilant is, too much hardware is not always a good thing, after all, hardware is more expensive, research and development process could not be ignored. Even worse is that after the publication of a single product that Amazon may not be able to devote more funding to a series of product launches in the future. In this regard, Apple or RIM hardware development may be a better alternative companies, retail companies like Amazon to provide complete mobile product line there are many uncertain factors.

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