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Amazon ($AMZN) Fire Phone Tied Back To Its Core Business

|Includes: Amazon.com, Inc. (AMZN)

Summary

The visual search engine, Firefly, differentiate the phone from rivals.

All cool features tied back to items that can be purchased on Amazon.

Amazon sets a good example of corporate strategy that never loses its focus during expansion.

As much expected, Amazon ($AMZN) reviewed its first smartphone, Fire. Although the 3D display sparked lots of interest before the debut, the visual search engine, Firefly, drew more attention as an intriguing feature differentiate the Fire phone from rivals. Firefly can scan and interpret printed text, identify songs by listening to them, or recognize movies and TV shows by watching them. And then the search results will link back to items that can be purchased on Amazon. The powerful feature not only woos users, but also make them buy more stuff from Amazon.

Amazon is one of the most innovative technology companies nowadays. It has expanded from an online bookstore to many other fields, such as tablets, streaming music and smartphone. But most of its expansion tied back to its core business - e-commerce. Kindle was created to sell more books. Streaming music was created to build relationship with its premium members so that they will spend more money to purchase products on Amazon. E-payment system was created to eliminate middle-man's cost of online transactions. The Fire phone was created to build customer relationship, as well as generating more sales on its e-commerce site. Amazon sets a good example of corporate strategy that never loses its focus during expansion.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.