Is Amazon Becoming the Next Apple?
NEW YORK (TheStreet) - Is Amazon
The Seattle e-retailer is reportedly planning its next step into the hardware business by launching a smartphone to compete with the likes of Apple's iPhone and Samsung, according to The Wall Street Journal. Amazon has been meeting with developers in San Francisco and Seattle in recent weeks to demonstrate the device. Amazon plans to announce the device in late June, and begin shipping by the end of September, in time for holiday selling season, the Journal reported over the weekend.
Amazon did not return an emailed request for comment by TheStreet.
The smartphone device would be Amazon's latest foray into the hardware industry. In the past, Amazon did not put place too much emphasis on the development of hardware, instead using a razor-razorblade model, where if consumers purchased a Kindle or Kindle Paperwhite, for instance, it would open them up to a myriad of downloadable books, magazines, newspapers and accessories, but the device itself was less than adequate.
Amazon's media sales, which includes digital content like movies, MP3 music, books and magazines, among other things, rose 9% in 2013 to $21.7 billion, or 29% of the company's annual net sales. Yet, at this month's Fire TV launch, Peter Larsen, Amazon's vice president of Kindle, noted the company is working on creating "premium" hardware for consumers for a value price.
Amazon Fire TV, is its latest entry into the hardware market. Amazon's set-top box connects to consumers' televisions to the Internet and streaming services that will compete with Apple TV, Google's
Amazon touted Fire TV's "powerful performance" in the announcement, which includes "quad-core processor with over 3x the processing power of Apple TV, Chromecast, or Roku 3, a dedicated GPU, plus 4x the memory of Apple TV, Chromecast, or Roku 3 for exceptional speed and fluidity," which also includes "stunning 1080p HD video and immersive Dolby Digital Plus surround sound."
TheStreet contributor Gary Krakow called Fire TV "the streaming video device for the others to beat" noting features like X-Ray, which turns your Fire HDX tablet into a second screen, search by voice and the quad-core Qualcomm processor all add to the set top box, making it "a much more powerful device, capable of great things."
Amazon is also appealing to the gamer community by making Fire TV a gaming console, with 100 game titles available and an optional $40 game controller.