The very name of Fire Phone is certainly incendiary, and this fire appears to have been transferred to the headquarters of the firm, where Bezos will have to join forces and explain to the shareholders of the company what happened to the revolutionary terminal. The truth is that the expected launch of Amazon smartphone went all out and managed to catch the attention of a very polarized market. But it was not long before they took the first warning signs: in July this year and was moved a major loss of $ 120 million, due in part to the development costs of the Fire Phone. But as often happens in these cases, the reality exceeded the forecast.
Possibly the great miscalculation Bezos with this product is trying to repeat the success of the Kindle Fire can not say otherwise: the Fire Phone has been a fiasco of considerable size, and largely responsible for the losses announced in the quarter, which totaled 437 million dollars, what portion of the hole corresponds to the smartphone from the house? 172 million dollars. A very risky move that has gone askew for Bezos, the man who so far seem to have the wind always on your side. Inventory costs soar and the firm does not know quite what to do with the stock.
What exactly has gone wrong? It makes little sense to take the analysis to the field of hardware or performance, because the terminal was solvent in this regard. Possibly the great miscalculation Bezos with this product is trying to repeat the success of the Kindle Fire with a smartphone. The Amazon tablet itself was a success, because he managed to give more air to the ecosystem allowing users to enjoy films, series and books on the big screen of the computer. The manufacturer was able, on the other hand, a very aggressive selling price and the wheel suddenly started spinning at high speed.
A miscalculation
Things could not go wrong. With the know-how which has the largest store in the world and now the experience of the tablets, the entry into the smartphone segment had to be triumphant. In Bezos plans, the Fire Phone would be a new instrument for the user shoot impulsive buying and downloading books and movies continue to be enjoyed on your big screen. Surely more than a prudent caution that the voice telephony market is different, but we assume it will not be easy to contradict a leader breaks and tears as Albuquerque. There would be no aftershocks. The Fire raze Phone.
But this provision came face to face with one of the walls against those that would have stamped the Bezos: customer perception . Nokia is a manufacturer of smartphones, such as Samsung or HTC is, but it's hard to escape the image of Amazon with its well managed slogan 'The everything store'. The retail giant online has become so strong in the segment sales through the internet that costs assume now catering to this smartphone. Well, one could say that this deviation in perception could also be applicable to tablets, but this item, at the bottom, not far from ebook reader or format, or benefits.
But a smartphone opens a new range of use which is not always strong content consumption online, the great value Amazon, but in applications, services, or features that make life easier for the user. If this chain of miscalculations add own high end price range , we will understand much of the bump Bezos and company. And on top of misfortunes, the few users who have bought the team have turned their frustration into lacerating reviews on Amazon itself. We assume you have missed a bit of everything on this bet, or as simplifies the analyst Avi Greengart, " Amazon has not provided sufficient grounds for the user to buy."
