Amazon’s Fire phone — and what it means

Hello everyone!

I wrote this post about the Amazon Fire phone yesterday morning.

At the time I wrote it, I didn’t yet know what the phone was called or any of its exact details — that came later in the day, with Amazon’s official unveiling. But, thanks to excellent reporting by VB writer Mark Sullivan and solid context from the rest of the VB team, I was able to put together a pretty good picture of what it would likely mean.

What Amazon’s ‘Fire Phone’ means — and why it could be a real contender

Why does a company that started as a bookseller, evolved into an e-commerce giant, and has seen some success selling Android tablets think that it can take on the ruthless market of smartphones?

What we have, in Amazon’s Fire phone, is a first draft of a smartphone from a company that has all the advantages of an Apple or a Google — and then some.

Amazon, in my opinion, is one of the few companies with a “full stack” of technology to back up a consumer electronics business: cloud services, software, an app store, content. In addition, it has an enormously efficient retail operation and it has credit card details for millions of consumers, making its phone a powerful potential digital wallet.

What we didn’t know is the extent to which Amazon would try to use its product knowledge — via its “Firefly” image recognition feature — to insert a wedge between its customers and the retail outlets they usually frequent. Imagine standing in the aisle at Walgreens, picking up a bottle of Excedrin, and pointing your phone at it. The phone recognizes the bottle, gives you details on what it contains — perhaps more than you can easily get from the label — and offers to ship you the bottle for substantially less. Because it has text recognition capabilities, the phone knows exactly what price Walgreens is selling it for, so Amazon can always undercut that price.

So far, nobody seems excited enough about this phone to actually buy it. But this is just the first version. I will say this, I’m getting a little scared of Amazon.

I’d like to hear what you think!

Some more coverage of the Amazon Fire phone from VB’s team:

 

 

In other news, I went to Paris last week to learn about the French tech economy. (I had some pretty good meals too.) What I saw was substantially different from what I expected. Here are some of the highlights: