Amazon could launch a smartphone this year that costs “a fraction” of what Apple charges for its iPhone, a new report says.  Amir Efrati at The Information spills details from an allegedly leaked internal Amazon document. The paperwork is said to have been produced by a potential partner and two people who were involved in discussions with Amazon. According to Efrati, the document discussed strategies for penetrating smartphone markets in China, Europe and the United States. Earlier discussions also mentioned Latin America as a possibility. The phone, which has been referred to as “Project Aria,” is likely to go on sale this year, according to Efrati. There’s no specific price, but he says Amazon is “determined” to “keep the phone at a small fraction of the iPhone’s $550-and-up price tag.” If Amazon does launch a smartphone this year, it’s unclear if it will fall under the company’s own brand or if it will work with a partner. Efrati says Amazon was “in talks” with “multiple hardware partners” last year about bringing the device to market, but there’s no confirmation that it will stick with this plan. The Seattle-based online retail giant has been rumoured to enter the smartphone market for quite some time. Previous reports suggested Amazon has two smartphones in its pipeline: a cheaper model and a high-end flagship device. The pricier version is rumoured to come with four built-in cameras that enable 3D eye detection and facial recognition, as TechCrunch reported in October. The device referred to in the documents obtained by The Information is likely the purported cheaper model, which it says may launch with a 5-inch HD display, a plastic back cover and 16GB of storage space. https://financialpost.com/business-insider/amazon-inc-smartphone-launching-this-year-at-fraction-of-iphone-price-report-says? What will happen to the demand for other smartphones if Amazon enters the market

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Question 2

Amazon could launch a smartphone this year that costs “a fraction” of what Apple charges for its iPhone, a new report says.  Amir Efrati at The Information spills details from an allegedly leaked internal Amazon document. The paperwork is said to have been produced by a potential partner and two people who were involved in discussions with Amazon. According to Efrati, the document discussed strategies for penetrating smartphone markets in China, Europe and the United States. Earlier discussions also mentioned Latin America as a possibility. The phone, which has been referred to as “Project Aria,” is likely to go on sale this year, according to Efrati. There’s no specific price, but he says Amazon is “determined” to “keep the phone at a small fraction of the iPhone’s $550-and-up price tag.” If Amazon does launch a smartphone this year, it’s unclear if it will fall under the company’s own brand or if it will work with a partner. Efrati says Amazon was “in talks” with “multiple hardware partners” last year about bringing the device to market, but there’s no confirmation that it will stick with this plan.

The Seattle-based online retail giant has been rumoured to enter the smartphone market for quite some time. Previous reports suggested Amazon has two smartphones in its pipeline: a cheaper model and a high-end flagship device. The pricier version is rumoured to come with four built-in cameras that enable 3D eye detection and facial recognition, as TechCrunch reported in October. The device referred to in the documents obtained by The Information is likely the purported cheaper model, which it says may launch with a 5-inch HD display, a plastic back cover and 16GB of storage space.

https://financialpost.com/business-insider/amazon-inc-smartphone-launching-this-year-at-fraction-of-iphone-price-report-says?

What will happen to the demand for other smartphones if Amazon enters the market?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Fundraising
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education