Originally Posted by wizwor
I felt a great disturbance in the Force, as if millions of AAPL share holders suddenly cried out in terror and were suddenly silenced. I fear something terrible has happened.
Why? It is unlikely that Amazon will be pitching this as a high-end phone to compete with the iPhone and Galaxy SIII, it will more likely be a mid-level phone designed to push Amazon's ecosystem, as with the Fire. Its direct competition will be something like the Nexus 4.
It is more threatening to Google, from that point of view, as it increases the marketshare of the proprietary Android systems, versus the more open ones. Even more devices with custom UIs that Google didn't design, even more devices that don't get timely updates, even more devices with non-standard app stores that Google doesn't get revenue from, and (the greatest threat), more chance that at some point Amazon introduce their own in-app ad system, and require developers to use it. It was that risk with Apple that was a significant motivation for developing Android in the first place, Google can't afford to be locked out of ad revenue.