Jeff Bezos’ new Amazon phone is getting panned before it’s even unveiled.
One issue is Amazon’s plan to sell the new phone, which is slated to launch on Wednesday, exclusively through AT&T.
Reports of such a deal the day before the big launch prompted comparisons to Facebook’s doomed line of phones, which were also exclusively sold by AT&T.
Sales of Facebook’s line of phones were so poor that the latest phone, known as the HTC First, went on sale last year for 99 cents — down from $99.
“Let’s hope @amazon doesn’t fall victim to the @att curse that is the facebook phone,” T-Mobile’s colorful CEO John Legere tweeted on Tuesday.It wasn’t just Legere, AT&T’s competitor, who raised eyebrows. Analysts and bloggers questioned the rationale of selling a phone so late in the game through just one provider.
“A lot of questions remain as to why Amazon would enter a market where so many have failed before them,” said Julie Ask, Forrester Analyst and co-author of “The Mobile Mind Shift.”
“Amazon will need something big to get attention,” Ask said.
Yet Ask and other analysts questioned whether Amazon’s planned 3-D interface will do the trick. The company may need to give away some products and services, such as video streaming and delivery, at a discount to gain traction, said Amir Rozwadowski, a telecom analyst with Barclays.
“Historically, hardware hasn’t changed the game in unseating the incumbents,” Rozwadowski said of the mobile-phone industry.
Amazon has yet to confirm the new phone, but it’s widely expected to debut a mobile device at an event in Seattle on Wednesday.
The goal is to collect consumers’ data to allow more targeted selling of products, said Michael Pachter, a technology analyst with Wedbush Securities.
“So if a person watches ‘Transformers,’ they could offer the toys, DVD or video game. If they watch documentaries on fishing, they could offer rods and reels,” Pachter explained.
