) has announced its acquisition of the color display unit,
Liquavista NV from Samsung Electronics Co. for an undisclosed
Founded in 2006, Liquavista NV was a part of Koninklijke
Philips Electronics NV, which was acquired by Samsung in Dec,
2010. With the help of
), Liquavista has developed processors that can be used in media
player and e-reader displays. Liquavista's flagship
"electrowetting" technology is a new display technology that
enhances the clarity of the color display without consuming a lot
of power, irrespective of the lighting condition. Since battery
life is a major concern for all mobile Internet device (MID)
manufacturers, Amazon is very interested in this technology.
The acquisition comes at a good time for Amazon as the launch
of its next line of Kindle Fires is still likely a few months
away. Electrowetting, if incorporated in the next version of its
tablets, would be particularly useful for reading children's
books and graphic novels as these deplete battery lives faster.
In each version of its earlier tablets, Amazon has added
improvements and upgrades. So it is very likely that this time
will be no different.
Despite its strong growth in the last few years, sales of
Amazon's Kindle Fire tablet are still well behind
) iPads and Samsung's Galaxy series. They also slightly lag
) Nexus line of tablets.
As a result, IDC estimates that Apple continues to lead the
market with a 39.6% share followed by Samsung at 17.9%, ASUS at
5.5% and Amazon's Kindle Fire at 3.7%. However, unlike the other
players, Amazon is primarily a retailer, so its focus is more on
selling goods. Therefore, the importance of its Kindle tablet is
as a platform for these sales.
Amazon is one of the leading players in the extremely
fast-growing retail e-commerce market. While the strong growth
prospects are making the market more competitive by the day,
Amazon continues to maintain and even grow its share on the back
of its consistent and reliable service. Amazon's scale of
offerings, its broad reach and platform approach are the keys to
In the first quarter of fiscal 2013, Amazon reported revenues
of $16.07 billion, down 24.4% sequentially and up 21.9% from the
year-ago quarter. This was in line with the guidance for the
quarter of $15.0-16.6 billion (down 25.7% sequentially, or up
19.8% year over year at the mid-point), although missing our
expectations by a sliver. Year-over-year revenue growth was 24%
excluding unfavorable currency impact.
Amazon has a Zacks Rank #3 (Hold).
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