Friday, July 6, 2012

Dear Amazon: Why you should stay away from smartphones




Amazon CEO Jeff Bezos announced the Kindle Fire, the company's first tablet computer, last year.


(Credit: Sarah Tew/CNET)

To: Amazon CEO Jeff Bezos Re: Those reports of your plans to build an Amazon smartphone


As alluring and potentially lucrative as the smartphone business may seem, it isn't worth the headache and distractions it will bring to Amazon.


Look, I get it. Amazon is riding high with profits that still impress Wall Street, a dominant presence online, and healthy gadget business with the Kindle e-reader and Kindle Fire tablet. You also don't want to get muscled out of the mobile world, a growing opportunity to sell your books, music, movies, and other products. So naturally, you'd want to turn your eye into the infinitely larger smartphone business. Apple and Samsung Electronics are sitting on mountains of cash and have a nice hold over their customers, and you want the same.


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