“Sebastian writes that while a tablet makes sense for Amazon, the same is not true for a phone,” Gallagher reports. “‘Since tablets skew more heavily toward media consumption than smartphones, they are a natural fit for Amazon’s commerce and media platform,’ he wrote. ‘In contrast, smartphones require specialized native apps (e.g., Maps, Voice Search, E-mail) that would be costly for Amazon to replicate.’”
Gallagher reports, “In addition, Amazon would face other costs related to R&D and carriers that ‘would be significant,’ he wrote. And while Sebastian currently rates Amazon’s shares as an outperform, he noted that he would view a smartphone launch by the company ‘negatively.’”
Read more in the full article here.
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