The Amazon Smartphone is the latest update that is in the rumours now. Initially attracting a lot of critics single handedly, the latest news says that the rumour has now also involved another Seattle-area tech company, HTC.
As both Amazon and HTC has got their North American headquarters in Bellevue, reports as stated by the Financial Times and the Bloomberg proclaims that both Amazon and HTC are making Amazon branded Smartphones that shall be in collaboration with the Amazon Prime content and services. And the plans for initiating such have been going on since early this summer.
HTC has been in the mobile phone market for quite some time now and excluding their recent loss, they have been doing pretty well in the Smartphone market. But coordinating with them, what kind of advantages and challenges will Amazon have to face?
As it was doubted whether the retailers would want to trade with the Amazon tablets, such Smartphone creations will create an opportunity for Amazon to sell their devices that will direct the consumers to their own web retail locations. Moreover those operators who have got a greater pull in the Smartphone distribution will be less afraid to have these products showcased.
Therefore on the one hand where the retail consumers would be worried to sell such devices as these would be made available to the customers online as well from that they can buy instead of visiting the stores, on the other, for the operators who sell “services”, selling these products is of a lesser concern.
Earlier Target would sell the Amazon Kindle tablets but later chose to build a relationship with Apple. Amazon had also been successful with their strategic use of “razors vs. razors”.
As long as Amazon’s budding relationship with HTC is concerned, it is known that HTC always had the latest technologies to offer to the clients and yet they always believe in playing up with another company’s strength. This forte of HTC allowed them a great going with the sales. Therefore it would be a challenge for the Amazon HTC device to get an authorized reach of the contents and services. It is important to receive an authorized tie up because only with a tie up with the content can the device be sold in regions where the contents are authorized. In general, Amazon doesn’t have a global reach or an insurance which calls for a restricted market.