Bezos has the vision that there needs to be one last crucial link to fit into his plan for capturing the consumer to click onto Amazon for buying and he will provide a smartphone to accomplish the total consumer experience.
Amazon has spent billions of dollars the last few years setting up the delivery service by building warehouses across the US to achieve faster service. The devices such as Kindle Fire, video and music streaming to play on the new Amazon device and Dash, the user friendly service that scans your empty cupboard and notifies you to place a grocery order are intricately connected for a satisfied consumer.
The last piece in the merchandising model is the smartphone. Amazon has 250 million customers and last week bundled its Amazon Premier Service to streaming music. In a new model for the merchandising world in which Amazon plans to rule there is the smartphone to link it all, so you can view, listen and place orders with a touch on the new Amazon smartphone.
In true David Copperfield style of creating excitement with mystery Amazon released a video last week which displayed consumers holding a device in their hand which looked like the back cover of a smartphone and had the Amazon logo on it.
Amazon built curiosity with the people on the video exclaiming “amazing” and “I have never seen anything like this” while they tilted the device back and forth. This leads to the conclusion that the Amazon smartphone will be 3D and have unique features. This will fit into the plan that you order those items identified by Dash.
Revenue from media was up 13 percent in the first quarter of this year over last year same quarter. Since Amazon introduced the world to electronic reading with is Kindle and has put together entertainment devices and user friendly ordering of products with quick delivery, the smartphone will launch a new world of merchandising controlled by Amazon.
“If consumers adopt Amazon’s phones — and that’s a big ‘if,’ considering they love their iPhones and love their Android devices — it can then consolidate e-readers into smartphones, just like cameras and music players have been consolidated,” according to Rebecca Lieb, an analyst with the Altimeter Group. She views Kindle as the center for this entire new model. It has the components to ignite the digital merchandising for Amazon.
Today, Amazon has released news about its apps which has tripled over last year and it holds 240,000 apps in its announcement. The emphasis on the apps today gives a clue that when the smartphone is revealed on Wednesday the app and the smartphone market will be linked.
Whatever happens after Wednesday and the consumer reaction to the new world of media and merchandising, Amazon will be setting an unprecedented way of how we spend our time and money for convenience and entertainment.