5 Things to Expect From an Amazon Smartphone: Cheap Price
Finally, if there’s anything resembling a sure bet when it comes to Amazon, it’s that it habitually prices its hardware near (sometimes even slightly below) cost. The theory behind this practice is that Amazon plays a long game: The company is willing to break even or even lose a bit of cash selling hardware that’s tied to its ecosystem, expecting that you’ll use it to buy physical or digital products from Amazon.
So while Apple and Samsung continue to charge $650 and up for their flagship smartphones, it’s a fairly safe bet the Amazon smartphone will follow the pattern of its Kindle Fire HDX tablets and undercut the competition by a significant margin.
With the Galaxy S5 now on shelves, the iPhone 6 (or possibly two new iPhones) expected in the fall and Microsoft’s (MSFT) Windows Phone 8.1 getting rave reviews, 2014 is shaping up to be a big year for smartphones. Adding an Amazon smartphone to the mix could escalate it to a blowout year and shake up the industry in a big way.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.