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Giants Collide – Is AAPL vs. AMZN the Next Big Tech Clash?

Competing with tablets, e-books, music, app stores, the living room and now smartphones

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AAPL vs. AMZN: Smartphones

aapl amzn apple amazon
Source: Amazon

Apple was once a computer company, but it’s the iPhone that’s been driving the company’s growth for most of the past decade. In AAPL’s latest quarter, it reported selling 35.2 million iPhones, and with their high margins, the smartphones represent a huge chunk of Apple’s $7.75 billion quarterly profit.

Amazon is crashing the flagship smartphone party with the $649 Fire Phone (reviewed here).

The U.S. mobile market is a mature one, meaning there aren’t many net new customers looking for their first smartphone; increasingly, manufacturers must convince someone who already owns a smartphone to ditch it and buy a new one.

The Fire Phone may not be an immediate threat to the iPhone, but if AMZN succeeds in turning Amazon Prime members into Fire Phone-toting mobile shoppers, at least some of those buyers will likely leave an iPhone behind.

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