Amazon.com, Inc. (NASDAQ:AMZN) will taste failure with its Fire Phone, Kevin Paul Scott predicted in a recent interview on Fox Business Network. Furthermore, the company will face various obstacles in order to be successful in the smartphone market, Scott said in a discussion that also featured Wayne Lam.
According to Lam, who was said to be for the new smartphone, Amazon.com, Inc.’s (NASDAQ:AMZN) Fire Phone had quite the unveiling. He noted that the one of the expectations for the smartphone which was met was the quality of the device. Adding to the quality construction is the phone’s hook, dynamic perspective, which Lam added that we have not seen before.
However, Lam said that entering the smartphone business presents a challenge to Amazon.com, Inc. (NASDAQ:AMZN) especially because it is going to have to go against dominant players including Apple Inc. (NASDAQ:AAPL) and Samsung Electronics.
Asked about the services and content being offered by the new Fire Phone and whether it can be compared to Apple’s iPhone which also provides access to content like songs and movies, Scott, ADDO Worldwide co-founder, said that it’s all about perspective. The success of the smartphone depends on how people view Amazon.com, Inc. (NASDAQ:AMZN), he said, adding that he thinks it’s too steep a hill for the company to climb. People view the internet giant as a place to buy goods and not as a maker of goods.
When told about the Kindle and other Amazon.com, Inc. (NASDAQ:AMZN) devices, Scott said that the percentage of people who own these devices is small when the whole market is taken into consideration. At best, the company will take distant third in terms of market share, he added.
Meanwhile, Lam, who is a senior analyst for HIS, agreed that though the company should try to overcome this perception, the phone they are offering is itself not too special with the exception of its Firefly feature. Firefly lets people identify goods such as books, items, even video and audio and then give them the option to buy these goods on Amazon. Nonetheless, he said that Amazon is being innovative with the Fire Phone.
As for Scott, he said that he thinks that the Fire Phone will be a failure not because he dislikes the company or thinks that the smartphone is not cool. He said that Amazon will not be able to overcome the obstacles he and Lam have pointed out.
Shareholders in Amazon includes Standard Pacific Capital managed by Douglas Dillard Jr. And Raj D. Venkatesan which had 69,676 shares in the company by the end of the first quarter. Another hedge fund with a position on Amazon is Sac Subsidiary’s Cr Intrinsic Investors which had 69,001 shares in the internet giant at the end of March.
Disclosure: None
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