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Quick Take: Fire Phone Fails; Amazon Doesn't

Insights, Not Sales, Will Define Amazon's Success

June 19, 2014

Why Read This Brief

On June 18, 2014, Amazon announced the launch of a smartphone, named the Fire Phone, with unique hardware and services designed to enhance its core businesses: retail and a digital platform. Forrester's take? Amazon won't be successful in the overcrowded and difficult handset market. But the customer and mobile insights that Amazon will gain will help propel Amazon retail sales online and on mobile devices, its media platform business, its negotiating power with partners, and ties with its developer community. This quick take outlines Forrester's analysis on the announcement and Amazon's opportunity and struggles ahead with its smartphone.

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