Amazon, the top dog in many markets, has entered the highly competitive and evolving world of the smartphones market with its new Amazon Fire phone. Microsoft’s Nokia X2, another smartphone competitor, has just released a bargain priced phone with a group of attractive features. Apple’s iPhone 6 is about to present, probably in September, with a surprise package of its own. The most interesting element in this mix is the observation of the smartphone market evolving into company servants for the large technology companies.
Amazon, for example, has the most anchored, available and obvious market share to gain by the introduction of its new Fire phone. Yes, the Fire has new bells and whistles, with its 3D technology as a gimmick for easily placated consumers, and it also includes Amazon’s new music service too, but what is the real attraction for a giant company that has everything already?
It does not have everything already. There are still markets to engulf, consumers to consume, smartphones to sell, and advertisers to engage, persuade and convince as to what people purchase, will purchase, how often and how much they are willing to spend. A smartphone is the perfect vehicle to place in their subscribers’ hands. The evolving 3D technology is an attraction that gives the content the appearance of actually being there, a tremendous incentive to purchase. If Fire phone catches on, the smartphone market will have evolved again and stepped into new territory.
What better way to sell advertising than on a phone that gives their product the appearance of being held in your hand already? That is market incentive. The real market here for Amazon is to become a technology player like Apple, Google, Microsoft and Samsung. It could be a risky move. These companies already own the lions’ shares of the tech industry, it is already a tough smartphone market with fierce competition between the current players.
Any company that has a successful smartphone as a servant has already evolved into a conglomerate with enough clout to corner a share of the market, one does not need to be the lion king in the technology sector to reap a profit. For example, if Amazon is able to secure just one percent of the smartphone market it may lead to $1 billion to $1.5 billion in a revenue stream annually. A smartphone that brings in that kind of cash is a servant to keep.
What about Microsoft’s new offering, the Nokia X2 smartphone? What is the big deal there? Microsoft’s own blurb is a major clue as to where they are heading, when the company states it is “designed to introduce the ‘next billion people to the mobile Internet and cloud services’.” Throw in a few top-notch features on the Android platform, such as the usual line of Microsoft services, a Fastlane feature, for switching between apps quickly, three types of screens for easy navigation, resizable tiles, a Skype feature and One Drive for saving all personal information like pictures, videos etc. to a cloud and the buyer is ready to go.
Yes, maybe. That last feature, the cloud service, Microsoft is offering something a person might not have had before, why? With the cloud service they are introducing people into the Microsoft world of applications, where everything is in the cloud. The Nokia X2 is an internet phone using Microsoft’s services and is not hooked into the Google support system. When a Nokia X2 is purchased all the apps are in the Microsoft arena and that is where the money is.
Smartphones evolved as handheld computers and became servants of the users, because major technology companies were showing off their scientific skills with newer, smaller, faster, and better hardware. Smartphones have switched loyalties, now serving their original masters, bringing users back into their folds by offering services consumers can only obtain if they purchase a certain brand, or a particular model, or a specific phone.
Opinion By Andy Towle