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Amazon Dials Up a New Use for Its Cash

amazon-telefonOnline retailer .com Inc.  on Wednesday is expected to reveal its first smartphone, featuring a display designed to respond to users’ eye movements and capable of displaying three-dimensional images.

The device is Amazon’s first foray into the highly competitive market dominated by Samsung Electronics Co. and Apple Inc. The handset business can be very unkind; once-highflying brands like Nokia, Motorola and BlackBerry have seen their market share erode.

Amazon will enter the fray with a powerful partner. AT&T Inc.will be the exclusive carrier, according to people familiar with the Seattle company’s plans. The arrangement extends Amazon’s relationship with AT&T, which also provides wireless service for Kindle tablets and e-readers. The move could help AT&T attract new subscribers at a time of intense competition among wireless carriers.
The Web-commerce giant has invited press, developers and others to an event in Seattle where Chief Executive Jeff Bezos is likely to show the device. A video teasing the event shows youths marveling at something they hold in their hands and out of sight of the camera.

Amazon shares are down 18% this year, compared with a 4% gain by the Nasdaq Composite Index, as investors worry about the company’s razor-thin profits and spending on new shipping and hardware initiatives. Key details, including the size of the phone, price, and when it will be available, couldn’t be learned.

To succeed, Amazon will have to convert not only new customers, many of whom are on multiyear wireless contracts, but also mobile developers. The phone is likely to use a version of Google Inc. GOOGL Android mobile-operating system that doesn’t have access to Google’s own Play store, with its million-plus apps. Amazon’s Kindles use such an operating system.

Some developers creating apps other than games who have seen and used nonproduction versions of the Amazon handset said it wasn’t initially clear how they could use the eye-tracking software in their apps. One possibility, these people said, is the software could help improve mobile advertising placement, as well as app design.

Any cellular phone will be the latest instance of Amazon’s growing components press, which include it is set-top field with regard to loading online video, some sort of wand with regard to checking and ordering goods from your own home, and a updated variation of it is Kindle Flame tablet laptop or computer. The particular Flame shed soil in order to challengers from the 1st 1 / 4, dropping to your 1. 9% reveal of world-wide tablet gross sales, coming from 3. 7% per year earlier, in accordance with specialist IDC.

Just one possible benefit Amazon online offers in excess of other handset creators is actually it is readiness in order to separate possibly about components, depending upon profits in the services readily available from the units. It really is a technique Amazon online offers useful for it is e-readers and pills, hoping in order to lure people to obtain a lot more e-books and a digital tunes and online video. In case Mr. Bezos prices the smartphone next to making expenses, Amazon online may undercut challengers and entice people exactly who are unable to pay for higher-end units.

Amazon online employees exactly who labored on the smartphone device in excess of it is a very extensive period of progress said the 3-D monitor is fantastic for game play and may even have exclusive programs with regard to cell trade, including 360-degree vistas of apparel, toys and games as well as other goods. In the long run, these individuals said, Amazon online vistas the smartphone seeing that successfully some sort of cell register with regard to acquisitions, which include flick seat tickets, e-books as well as diapers.

Since touch screen phones store some sort of user’s spot and other private info, Amazon online may obtain completely new observations in owners’ behavior and shelling out designs to higher customize product or service recommendations and manage it is storage place products.

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