Amazon share price: Fire Phone arrives

By: Michael Kamberov
Michael Kamberov
Kamberov joined us to improve his ability to report the financial markets and learn about business. He now heads… read more.
on Jun 19, 2014
Updated: Oct 21, 2019, Thursday, June 19: Amazon’s 3D smartphone, the Fire Phone, debuted in Seattle yesterday. “Can we build a better phone for our most engaged customers?” asked CEO Jeff Bezos at Amazon’s launch event. “Can we build a better phone for Amazon Prime members? Well, I’m excited to tell you that the answer is yes.”

**Dynamic Perspective**
Perhaps most importantly, as correctly predicted by recent speculation, the Fire Phone supports 3D effects. The 3D interface, called Dynamic Perspective, enables users to look at images from different angles and with greater depth as they tilt the phone. Four front-facing cameras track head movements and change the perspective depending on the user’s activity. Tilting the device from left to right and vice-versa lets users access certain menus and the notification center. Bezos claims that the feature makes user interaction and phone navigation easier and faster.

The Fire Phone’s other exciting new feature is called Firefly – a tool which can automatically recognize anything the phone is pointed at. During the launch event Bezos demoed the feature with a couple of items and the device picked them up almost instantly. The Fire Phone can scan all sorts of objects. It can also recognize music, TV shows and works of art. Firefly, which is powered by a technology called “semantic boosting”, can recognize everything from groceries to URLs and phone numbers. According to Bezos, Amazon’s database consists of over 100 million items. If the device identifies the item, customers can purchase it immediately as long as it is offered by Amazon.

Other features include a 13-megapixel camera, a 4.7-inch display and 2GB of RAM. The Fire Phone is 0.35 inches thick, and weighs 5.64 ounces. It runs on Amazon’s Android-based Fire OS 3.5.
Contrary to initial expectations that the device would be far cheaper than the Apple and Galaxy smartphones, the Fire Phone has been priced at $199 with a contract on AT&T. Amazon’s new product will sell for $649 without a contract. Buyers will also be tempted by the offer of a free one-year membership to Amazon Prime, the company’s two-day delivery and streaming service.

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Although some potential buyers were disappointed with the phone’s price, shares in Amazon rose 2.7 percent to $334.38 on Wednesday.
**Benefits for Amazon**
Amazon’s new product is essentially a portal for increased customer spending. Needless to say, the phone will be most valuable and useful to people who are regular Amazon users. However, the device has the potential to bring a lot of new customers to the company.

What’s more, since the Fire Phone comes with free one-year Prime membership, anyone who buys it will start using the company’s digital content catalogue. Given the fact that Amazon research shows that Prime customers, on average, spend almost twice as much as non-members, the company could significantly increase its digital revenue stream with the new phone.
The Fire Phone is said to be only available in the US on its July 25 launch. Amazon did not provide any information on the device’s international release during the launch event. The company would “not comment on future plans,” according to TechRadar.
**On June 18 buy Amazon shares at $337.00**
**On June 18 sell Amazon shares at $335.03**

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