“In a note to clients on Friday, Colin Sebastian of Robert W. Baird said the ‘risks and costs outweigh the potential benefits’ of an Amazon phone,” Dan Gallagher reports for MarketWatch.
“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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