Would Denna Move From Amazon.com Get You to Buy a Fire Phone or Kindle Fire? – Motley Fool

The Fire smartphone was a flop. Source: Amazon.

Even after the full-on flop of the Fire Phone, Amazon.com ( NASDAQ: AMZN ) CEO Jeff Bezos remains Dedicated to Increasing his company’s relevance in the growing mobile economy. Amazon’s most recently reported Plan Could convince people Their next tablet Should be a Kindle Fire or even That The Next Fire Phone – Should It Come along – is at least worth taking a look at. TechCrunch reports That Amazon is working on a programthat allows Customers to Download Premium paid apps and buy in-app add-ons for a single fee. The program is being called Unlocked, of according to TechCrunch – Which Said It got the skinny from a leaked internal presentation – and it hydrothermal similarly to Amazon’s Prime Instant Video service … but, you know, for the apps.

Not just for Amazon Devices
Unlocked would not be right for Amazon devices. Amazon’s app store is available for any Google ( NASDAQ: GOOGL ) ( NASDAQ: GOOG ) Android device, but users must disable certainement security settings to install it. When Amazon tried to sneak ITS app store into .its flagship app, Google delisted it, so now users must install the app store from the web.

Clearly, Google does not want the competition. Nor Should it. Load year, the company generated Approximately $ 10 billion in gross revenue from the ITS app store, so it’s a big supermarket That it’s cornered.

But Unlocked May give users the incentive They need to go out of Their Way and Install the Amazon app store. And Those would ask Valuable Customers for Google – Customers willing to pay for apps, at least in some form.

Amazon HAS attempted to Draw Customers to ITS app store beforehand by giving away apps That Typically CHARGE A Price , Attracting Customers interested in free apps. But Unlocked excellant Attract A Different Brand of customer. Typically customers who spend a lot on paid apps or in-app purchases would ask Drawn to the flat fee of Unlocked. That’s bad news for Google, Because Those Customers make up the Majority of ITS app store revenue.

Unlocked would reportedly be limited in .its selection of apps, and participation would be at the developer’s discretion. An app apr be free one day and a few bucks to the next, and an app That had free in-app purchases May Charge For Them again in the future. That Could Lead to Some Customers frustrated if Amazon Does not Manage .its partner relationships.

Kick-starting Fire Phone Sales
While the Kindle Fire sales continue to do well of according To The brief glimpses Amazon Provides to us, the Fire Phone was undoubtedly a flop. Amazon was forced to write down $ 170 million worth of Fire Phone Inventory in .its third quarter, resulting thing into a huge earnings miss, and a dent to .its stock price.

With tablets, Amazon during stands That the device ice Primarily about media consumption. In That sense; coupling a year of Amazon Prime makes perfect sense. And while users are Consuming an Increasing Amount of video content on Their smartphones, they’re still largely about the apps and games.

About one-third of total time spent on smartphones in the US ice with games, and That’s Exactly what Unlocked reportedly focuses on. While it wont have some non-game apps, the headlining partners reportedly include Sega America, and smaller game maker ustwo. Coupling a free year of Unlocked with a smartphone would make it Instantly more attractive.

Only Amazon
Only Amazon Could sacrifice the kind of Potentially disruptive deal Unlocked Seems to Be . Unlocked Will reportedly Require users to download Amazon’s flagship app in order to work, and some nice branding pops up everytime a user wouldhave otherwise had to purchase something from the app store. It Seems Amazon sees the potential for the app store to drive incremental sales on ITS retail website. That’s Exactly The Strategy Behind Prime, as well, Which HAS worked wonderfully, of according to management.

Whether Unlocked ever sees the light of day, and Whether it can persuade users to switch to Amazon hardware – or at Least install ITS app store – remains to be seen. But Amazon Appears dead-set on Strengthening .its position in mobile, Which is key if it does not want to’ve become just another app.

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