Amazon Smartphone a Smart Move?
It seems as if the continuing trend these days in the technology sector is to simply try and catch up to Apple (NASDAQ: AAPL). Take, for example, Microsoft's (NASDAQ: MSFT) attempt to enter the iPad-dominated tablet industry with its newly unveiled Microsoft Surface; although the tablet has some very useful features such as a snap-on keyboard, many analysts wonder if it can significantly boost Microsoft's bottom line and chip away at the market share of the iPad. Indeed, a large part of the catching-up strategy is due to the success of Apple. Apple has been a juggernaut that has seen its stock soar 49.6% YTD and has been riding on the waves of huge growth in markets such as China. Of course, there have been setbacks for Apple; for one, it is constantly the target of lawsuits filed by its competitors and obscure Chinese companies. Also, fears have recently grown about slowing growth in the smartphone industry negatively impacting iPhone sales.
Yet, a combination of these fears and Apple's presence in the industry has not deterred Amazon (NASDAQ: AMZN), the huge online retailer, from dipping its toe in the smartphone industry. According to Bloomberg, Amazon is working with Foxconn, the company best known for its controversy surrounding the production of iPhones, to create a smartphone. This move is also evident in Amazon's beefing up of activity concerning the acquisition of mobile phone patents. The company has already hired renowned patent manager Matt Gordon and is setting up meetings with companies that hold wireless patents.
Full analysis: here.