Why The Amazon.com, Inc. (AMZN) Smartphone Phone Matters

amazonJay Taylor: Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest internet-based retailer. It has a mobile payments arm, produces shows, plus has an e-reader and tablet. Oh, and it also sells books. And just about everything else.

Now, the company is expected to release the Amazon smartphone.

The Seattle-based retail giant has a launch event scheduled for Wednesday. It is widely reported that CEO and founder Jeff Bezos will introduce an Amazon smartphone at this event.

The exciting feature expected from the Amazon smartphone is the 3D screen, the “wow factor” alluded to in a teaser video Amazon posted to its YouTube channel.

The Amazon phone is a big deal for one key reason: the Amazon ecosystem.

Google (Nasdaq: GOOGL) dabbled in producing a smartphone, the Nexus one. After a lackluster response, the company bought Motorolla’s mobile phone unit. The aim was to merge Motorolla’s successful hardware with Google’s successful software. That effort was less than successful and Google dumped its Motorolla unit soon after.

As Blackberry (Nasdaq: BBRY) struggles to avoid becoming a footnote in the history of mobile devices,Microsoft’s (Nasdaq: MSFT) Windows phone has only a few percentage points of the global smartphone market share.

Apple (Nasdaq: AAPL) and Samsung are clearly the dominant players in the smartphone market, with Apple taking much more of the profit per user with its higher margin phones that lock users into the Apple ecosystem.

The key word is “ecosystem.”

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