Is Anyone Going to Buy Amazon’s New Smartphone?

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June 19 (Bloomberg) –- Bloomberg’s John Butler and Emily Chang discuss the new Amazon Fire and the smartphone wars. They speak on “Market Makers.” (Source: Bloomberg)

What happened?

What he was talking smack for days leading up to the amazon event.

He was not happy about the exclusive contract with at&t. so they had their event the same day that amazon revealed their phone.

He called the amazon phone boring.

They had a nighttime event and threw a big concert with macklemore where they announced customers ability to testdrive phones.

He was screaming that exclusivity sucks.

Exclusivity sucks for the industry.

But what did he think about the amazon phone?

I was excited.

I was expecting something big, and you know, i mean, i kind of saw an old business model, two-year contracts, exclusive with at&t, a phone priced as high as anything in the market.

I was confused because as a prime customer, i thought they were going to give me a phone, that they gave prime service to other customers.

I did see that the phone allows you to point at things and tell you what you are seeing.

To me, i usually know what i am looking at.

I am not sure having that phone telling me what i am looking at is going to help.

He is talking about the feature where you can point the phone at anything and it will tell you what it is you can take it back to amazon and buy it.

He does not think it is such a big deal.

It's a big deal because he doesn't get to sell it.

Joining us is john butler, a bloomberg industry analyst.

By the way, later today you can see the entire interview with john leger and emily.

Does this underscore the competitiveness of the smartphone wars and the saturation in the u.s.? my feeling with amazon is if you're going to take share from apple and samsung, you have to come at the market very hard.

It is a brutal market.

It's overcrowded.

What they came out with is a conventional smartphone at a conventional praise.

My feeling is if you look at amazon, at their heart, they are a retailer.

So what they are after is increasing the average transaction for the prime customer as opposed to winning a monster share in the smartphone market.

It is not going to take that many phones to get them where they need to be.

So should we actually be talking about what happened last night as less of a product rollout and more of a pr battle?

I think it was a real product rollout.

It's competitive, but it's not a share stealer, let's put it that way.

Why not roll out apple or something?

-- app or something?

He gets them closer to their customers.

Jeff bezos was saying i want to develop a device for heavy amazon users and prime users.

He did not say existing smart phone users.

That was very telling to me because what he is looking for is the connection with the core customer base.

Amazon says they want to decrease the amount of time between i want it and i have it.

If you have to go through a competitors phone in the mobile world to have that, it is going to slow down that time.

If you own the phone, you own the customer and the easy button gets that much bigger.

Emily, you're out there with all the geeks and the tech guys.

Is anybody going to buy this phone?

I heard a lot of reactions, everything from neato, that's kind of cool, too this is going to be a disaster.

I heard someone say it might be good for your grandmother as a gift.

Ouch.

You have to think about the things that the phone doesn't have, google maps, instagram, snapchat.

Why would someone give up their iphone to buy this?

I have an amazon prime account and buy a lot of stuff on amazon and it's not that difficult.

I don't know that i want a phone that is going to make me shot more.

The other question is, the features that do differentiate it, the 3-d holographic images, do people want to see that every day?

Do people watch 3-d television every day?

Those have not really work out.

Jeff bezos talked about this.

Press and hold the lock button behind your pin and up comes firefly.

The fireflies get released and they immediately start recognizing.

The idea is that this phone makes you more connected to the amazon universe.

A lot of people already are connected to the amazon universe.

Mark was quoted as saying he thinks we will look back on smartphones as a transition to ubiquitous computing.

So does it matter has this -- how this phone specifically does or is it a step in the right direction?

He don't want to leave it to apple and samsung, but there is still a big question.

Who is going to buy it?

So, if the phone is underwhelming, can we expect fb is asked to do with the fire phone what he did with the fire tablet -- jeff b sosa -- jeff bezos to do with the fire phone what he did with the fire tablet?

You either need a brand that is already established like apple or samsung -- amazon doesn't have that, or you have to have a low price.

I think over time the price of this is going to come down pretty quickly.

$200 is not enough right now, but over time.

$200 is a lot with the conventional contract.

Tune in later today because

This text has been automatically generated. It may not be 100% accurate.

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