Quote:
Originally Posted by murraypaul
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.
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Jeff Bezos said the Fire was not competing with the iPad. It wasn't. Amazon is competing with Apple. It's a clash of the ecosystems. Apple knows this and that is why they scrambled to get the mini to market. Apple's market share has dropped dramatically. Developers are flirting with other platforms. It's a big deal. When Amazon introduces their phone, it won't compete with the iPhone, but Amazon will be more competitive with Apple. Apple has to grow a lot to sustain their stock price and now they have to be careful about price since Amazon offers something pretty similar for a lot less money.