Amazon has never given up its dream of developing a best-selling smartphone. According to a report from The InformaTIon website local time on Monday, Amazon hopes to try again to develop a best-selling smartphone.
According to Shanghai Yige Information Technology, Amazon will no longer focus on developing hardware, but will cooperate with smartphone manufacturers to pre-install shopping and other applications at the "factory" level. In other words, Amazon is not simply pre-installing apps on mobile phones, but wants to integrate its core services, such as Firefly product scanning technology, directly into the mobile operating system.
Shoppers will be able to scan the products on the shelves with their phone cameras and automatically add them to the Amazon shopping cart. This will help users save the trouble of opening the Amazon shopping app to browse products.
Another possible scenario is that Amazon's voice assistant Alexa will be directly integrated into a smartphone. With Alexa, users can check sports results, place orders on Amazon, listen to news, and control smart home products. Currently Alexa is limited to Amazon Echo smart player.
Amazon released its first and only smartphone Fire Phone in June 2014, but this phone suffered a fiasco. It is too expensive and has performance issues and is only sold through AT&T. At the end of 2014, Amazon wrote down $83 million in assets due to excessive Fire Phone inventory.
At the center of Amazon's mobile efforts is the $99 annual fee of Prime's free shipping service, which includes Instant streaming video, music services, and photo storage services.
Amazon provides Fire Phone users with a free Prime membership service for one year, with the purpose of attracting more users and increasing sales for Prime.
Cooperating with hardware vendors will reduce Amazon's financial risks, while drawing on the hardware experience of major mobile phone vendors. Amazon's possible partners include HTC, and HTC has shown its willingness to produce smartphones that run deep-customized software from partners.
For example, HTC and Facebook jointly developed the HTC First mobile phone in 2013. HTC First hardware is developed by HTC, but it runs an Android version customized by Facebook. However, just like the Fire mobile phone failed, First also failed.
The InformaTIon pointed out that any partner will get a "good storefront" in the Amazon online store, which will help increase product sales.
When developing the Fire mobile phone, Amazon customized the core Android operating system and uninstalled all Google applications. Amazon also adopts a similar strategy in the Fire Tablet PC, the purpose is to limit Google's threat and avoid the revenue sharing to Google. However, mobile phone buyers may not dislike Google's applications. In fact, many people may be dissatisfied with the lack of Google's applications.
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