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Has Amazon set the smartphone market on Fire?

fire_phone

Amazon has released a long anticipated Smartphone on the market which compliments its range of
e-readers and tablets. Priced at £399 without a contract or from £33 for a 24 month contract with O2, the Fire Phone is at the premium end of the market, however the industry reviews feel the  specification falls short of the popular Samsung Galaxy S5 and Apple iPhone 6.

Tesco and Argos developed their own tablets in 2013, however this is the first time a retailer has developed its own mobile phone. Amazon has integrated shopping apps and technology for seamless product scanning and purchasing.

The Fire Phone price points sits between the latest Apple and Samsung phones which are up to £359 more expensive when purchased without a SIM or on a Pay As You Go tariff. The Fire Phone is similar in price to Sony’s latest Xperia phone – Z1 Compact.

Brand View's strategic pricing ladder showing price gaps

Brand View’s piano chart below shows Amazon’s smartphone entering the market where Sony, Apple and Samsung compete closely between £350 and £450. Samsung handsets feature in most of the price brackets whilst Apple’s are all at least £400.

Average shelf price for one week ending 9th October 2014

The trend over the past 12 months has been an increase in the average price of handsets from £140 to £300 driven by the market leaders providing higher specifications and increased functionality.

Pricing History of Smartphones  - Brand View

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