Smart Tablet: Fire Phone, Kindle Fire: Why Amazon multiplies failures

After a good start in 2011, sales of the group’s tablet are bunched month after month. Launched last summer, the first smartphone from Amazon has it ever made illusion. Explanations.

The history of Amazon products has a tendency to stutter lately. Everything begins with rumors that agitate the high-tech world via media and forums. Then the official presentation in style in front of hundreds of journalists when Jeff Bezos as the master of ceremonies and VRP new products.

Expertly maintained, the buzz is to appointments you and everyone, journalists and users expect the next step to have the product in hand and try to play. Comes the launch of the product on the market. And that’s usually around this time that the machine flu.

“More minimalist prototype a finished product”

Shortly after the release of the Kindle Fire in mid-November 2011, an article in the New York Times called into question slowdowns and tablet Wifi connection problems while analyst at Nielsen Normal Group going as far as saying: “ I can not recommend this purchase ” …

Introduced in June 2014, the smartphone, Fire Phone, it has also not been spared from criticism. “ Full of gadgets, but it lacks the essential ” estimated the Wall Street Journal. “ More minimalist prototype a finished product ,” thought his side the New York Times.

Each time the application a little catalog Limited is not spared. A resulting from the fact that Amazon launched its own mobile operating system, Android and abandon preferring to go it alone. Severe clubbed even as the first smartphone and tablet from Amazon just settled in the starting block.

canon Departure for the Kindle Fire

The result then is different for these two products. The Kindle Fire will first experience a great start. At the time, the tablet market is not bottled and Amazon flows out 4.7 million copies in the last three months of 2011, 16.8% of the market.

The group immediately becomes the industry No. 2 behind the invincible Apple’s iPad and Samsung is positioning especially in front of which, however, already has several shelves. But six months later, the Kindle Fire is no longer in the rhythm and his tongue. The US giant has sold only 1.2 million in the second quarter and now has only 5% market share.

For its part, the Fire Phone will do no illusion for a moment. Three weeks after its launch in early August 2014, The Guardian estimated at 35,000 the number of devices sold by Amazon on American soil (the main market of Amazon) during the first three weeks of marketing … A masterful flop. Especially since according to the Taiwanese website Digitimes, Amazon had set a rate of monthly production of between 300,000 and 500,000 copies.

Lack of partnership

The explanation for this double failure differ. “ In the tablet market, the problem lies in the Amazon that the entry level to which the group is positioned is now completely full. This was not the case in 2011 , “explains John Phillips, tablets sector expert at the firm IDC.

” There are now models quite correct from 50 dollars. When the high-end, it is completely captured by Apple , “he adds. Sold $ 649 “naked” – that is to say without subscription – the Fire Phone has dragged directly to its high price as a burden. Another problem is the lack of partnership established with US telecom operators. “ This is still a very subsidized market. However, the Fire Phone was only available from AT & amp; T “argues John Phillips. . No trace of the smartphone in Verizon stalls, Sprint and T-Mobile US, the three other operators who monopolize the overseas sector

The “cure” lower prices

In both cases, Amazon has tried to reverse the trend by slashing prices. In September 2012, the group launched a new range of its shelves and lowers the base price of its Kindle Fire to 159 euros – against 489 euros for the iPad – and sells its loss tablet. “ The Kindle Fire is a service (…) We want to make money when people use our devices. Not when they buy “then justifies Jeff Bezos.

The same” cure “is applied to the” sick “Fire Phone. First, the price goes, mid-September 2014, 199 dollars to 0.99 dollars, if the purchase is concluded together with a two-year subscription.

Rebelote few weeks later. The price of the device “naked” is only 199 dollars. An offer further lowered to 189 dollars in January 2015 together with a year subscription to Amazon Prime – a delivery service usually charged $ 99 for the year

To Fire Phone 2 in 2016?

But in both cases, electroconvulsive proves ineffective. According to IDC, Amazon has sold only 1.7 million of its tablet in the last quarter of 2014, against 5.8 million a year earlier, a drop of 70%. And is no more than the number 5 market, saw him pass Lenovo and Asus.

As for sales of its smartphone is radio silence … It is rumored Yet that Amazon would not be discouraged and think of launching a Fire Phone 2 in 2016.

“forward Leak”

” These failures are part of the learning process for the group of which it is not the heart of business , “said John Phillips who judges that” does Amazon can not completely abandon the hardware . “

While the group does not make money with the sale of these products, Amazon is obliged to place as much as possible in the hands of users. The goal? The latter passing through its online retail services remains the group’s cash cow business

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The only solution, the “ headlong with the constant introduction of new products in markets that are not yet saturated “argues John Phillips which states that” C is that Amazon already. He witnessed the launch a few months ago a mini decoder (note: the Fire TV Stick, a connected key to stream content to a TV via an HDMI port) or that of Amazon Echo (note: a chamber equipped with a voice command). “

Amazon has no choice. So that history does not come to be repeated, the group is bound to turn the page on its products and quickly begin one or even several new chapters. Without respite.

The success of the Kindle reading light

The failure of Fire Phone and the difficulties of the shelves Amazon should not completely overriding the success of the Kindle reading light launched in late 2007. . Evidence of the ability to Amazon to get a place in the hardware
course, the market is more dynamic – in particular due to cannibalization by tablets – and remains minor compared to smartphones . Still, Amazon size it the lion’s share. According to consulting firm Digitimes, Amazon arrogated 55% global market share in 2012.
The group also launched several new versions of its readers, which is now in its seventh generation, late last year. “ They have a very strong brand in reading lights. More like they came first in this sector, many users have invested in a digital library at home and do not have to change the model “concludes John Phillips.