After venturing into the set-top box arena with the launch of Fire TV, Amazon.com Inc. (AMZN - Analyst Report) is reportedly entering the smartphone industry, with its own long-rumored 3D smartphone set for a June launch. However, it is expected to be available for sale by September.
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According to The Wall Street Journal ("WSJ"), Amazon officials recently demonstrated the sample handset models to developers from San Francisco and Seattle. The phone will be available in both high-end and low-end versions. The high-end version will offer a screen, which will present 3-D images without the support of special 3-D glasses.
Moreover, the devices will be integrated with retina-tracking technology, which will be embedded in four front facing cameras. With this technology, users will see 3D images with the naked eye.
Rumors of Amazon’s intentions to launch a smartphone have been making the rounds for long. In Jul 2012 reports suggested that the e-commerce company was working with Foxconn on the gadget. Again, in May last year, it was reported that Amazon was targeting the smartphone industry.
Although Amazon has been successfully entering different markets, it might have to struggle to establish itself in an already crammed smartphone market. Companies like Apple Inc. (AAPL - Analyst Report) and Samsung Electronics Co. dominate this industry and together constituted 46.6% of the total market share in 2013, as reported by the research firm Gartner. Amazon’s late entry can be a huge disadvantage.
However, Amazon can have an edge over its competitors, given its special glasses-free 3D image viewing feature and retina-sensing display technology. Also, the device will provide a more compact software-hardware amalgamation, thus offering an improved user experience augmenting profits.
Amazon, the giant online retailer, sells a huge collection of products ranging from books to cloud computing services. It recently acquired a cloud-based digital comic bookstore, comiXology which allows users to read comics on the web, iOS, Android, Kindle Fire and Microsoft’s (MSFT - Analyst Report) Windows 8.
Currently Amazon holds a Zacks Rank #2 (Buy). Conversant, Inc. , which carries a Zacks Rank #1 (Strong Buy), is a better-ranked stock from the same sector and is therefore also worth considering.