Will Amazon's Fire Phone Boost Prime Subscribers?

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June 18 (Bloomberg) -- Bloomberg Contributing Editor Paul Kedrosky and Bloomberg's Jon Erlichman and Cory Johnson debate whether Amazon's new Fire Phone will help its Prime business. They speak with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

About how great prime was but he didn't give any numbers on how many people use amazon prime.

Somebody is going to have to shake bezos to get some answers.

I think you can walk away with some interesting positioning in the living room.

A lot of people of talk about this phone as a standalone devise.

Yet, the power of prime plays to the living room story of what this could be.

If they get a few people to buy this phone who are already using prime or sign up for prime and then they realize that it is fairly easy to shift in your home from the small screen to the big screen if you own fire tv, maybe they go out and buy that and see the experience you enjoy with prime by owning something like that.

If you don't understand it they have the call center basically waiting by with mayday.

There are people who are going to sign up for prime because of what amazon is doing.

Amazon walks away a winner on prime subscribers.

We don't how many there are but that is the big number.

It has grown significantly.

How much do you think this phone is going to boost amazon prime?

Don't people have to buy the phone for amazon prime to benefit for this?

This is my understanding.

The product must be purchased.

That is the obstacle standing in the way.

Would you buy for your parents?

I don't know anyone around me, it is not targeted to anyone i know.

Maybe a parent or an aunt or uncle.

They love to consume content.

They've read.

Now and then they make phone calls pretty consume video and audio content.

Maybe it is a decent appliance for those kinds of people.

At the same time it becomes a gateway product against -- to get someone on amazon prime.

I can see the way to get there.

It is just not obvious that is a material number that anyway and may have a big impact on the top or bottom line.

They say they have sold tens of millions of candles.

How much of a hit does that give how many phones they will se ll?

I don't think they really know.

I think that is one way they're going to keep the risk smaller.

I think this is not a such a benign devise for grandmothers try to use smart phones.

I think this is a trojan horse to take over retail.

He have done a deal with at&t where they're making a phone that probably cost 600 dollars to manufacture.

They have convinced at&t to feed it around the country and subsidize two thirds of the cost to get in the hands of people.

It will be used for people to shop almost exclusively on amazon.

I think this has the potential to be a great disruptor in business.

Amazon has spent a vast fortune in developing it.

They have the spreading of this spore subsidize by at&t. are people already stopping exclusively on amazon.

-- shopping exclusively on amazon.

Cory may have a herd of a company called best buy.

They sold electronics.

People going into stores.

They are doing great.

My point is this is old.

The notion this is going to unleash hordes of people previously trapped inside a previous retail stores are not going to be on amazon, that is happening already.

The people most liquid to do that already have a smartphone phone.

The other segment of the marketplace is the aunt, uncle, grandmother grew.

I'm not convinced they are going to be the ones to turn around.

But now it has steroids.

Now what happens instantly.

It is making the purchases while they are in the store.

You can do that now the amazon app.

No one uses it.

[indiscernible] the phone has a button on the side when you walk in the door, and bambi can buy -- and bam you can buy it.

Someone made the point earlier that when you look at something you know what you're looking at.

You can type in a few words in the search engine and find that thing.

I will give you the last word here, jon.

What do you think?

I think that at the end of the day, amazon is looking to get more people using amazon all the time.

This is a great way to very quickly find out if they can get more people using the world of amazon.

All right.

Jon erlichman, paul kedrosky,

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


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