Rumors of Amazon's intentions to launch a smartphone have been
making the rounds for long. Speculations revived regarding the
) 3D smartphone, when the giant online retailer announced an event
to be held on June 18 in Seattle to be hosted by chief executive
officer ("CEO") Jeff Bezos for a product launch.
Amazon made the announcement through a 50-second video broadcast
on YouTube showcasing people's reaction while trying out the device
outside the frame. However, Amazon did not provide further details.
This naturally prompted rumors that the e-commerce company is set
to launch a high-end 3-D smartphone, which would intensify its
A smartphone is actually quite a good idea for Amazon since it
would expand its current lineup of devices and further help sales
of digital books, music and movies.
Per Wall Street Journal (WSJ) reports in April, Amazon officials
demonstrated the sample handset models to developers from San
Francisco and Seattle. Apparently, the phone will be available in
both high-end and low-end versions, the high-end version offering a
screen, which will present 3-D images without the support of
special 3-D glasses.
Moreover, the devices will be integrated with retina-tracking
technology, which will be embedded in four front facing cameras,
enabling users to view 3D images with naked eyes.
Although Amazon has been successfully entering different markets,
it might have to struggle to establish itself in an already crammed
smartphone market. Per IDC reports, the smartphone market grew 21%
last year. Apple and Samsung Electronics Co. dominate the industry
and together constituted 46.6% of the total market in 2013, as
reported by the research firm Gartner. Amazon's late entry
could make growth difficult.
However, Amazon can have an edge over its competitors, given its
special glasses-free 3D image viewing feature and retina-sensing
display technology. Also, the device will provide a more compact
software-hardware amalgamation, thus offering an improved user
Amazon currently holds a Zacks Rank #3 (Hold).
), which carries a Zacks Rank #2 (Buy), is a better-ranked stock
from the same sector and is therefore also worth considering.
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