Amazon Fire Phone could add 55% to users’ shopping bills

“With a great deal of spectacle, Amazon.com Inc. launched the Fire Phone, the company’s entry into the smartphone market,” Quentin Fottrell reports for MarketWatch. “What Amazon chief executive Jeff Bezos didn’t mention at Wednesday’s launch: If you do buy the Fire Phone, you will likely spend a lot more money at Amazon.”

“Although Amazon has become the world’s biggest online retailer by undercutting brick-and-mortar stores, studies show that Amazon customers who also own Amazon devices spend 55% more every year with Amazon,” Fottrell reports. “Owners of Kindle e-readers and tablets in the U.S. spend an average of $1,233 a year on stuff at Amazon compared with $790 per year spent by people who don’t own Amazon devices, according to a 2013 study by market research firm Consumer Intelligence Partners.”

“By creating a mobile wallet smartphone, Amazon hopes to reduce any existing friction to mobile Amazon purchases and further disrupt physical retail sales — a 21st Century equivalent of Amazon’s one-click purchase,” Fottrell reports. “And shoppers don’t just go crazy on Amazon when they shop on their devices. Americans spend up to 20% more on their iPads than Android devices, according to a 2012 study by payment processing company Ayden. iPad owners spend $158 per order — the highest of any device — versus $105 by people on other mobile devices, according to a study by RichRelevance, a personalized product recommendation company.”

Read more in the full article here.

MacDailyNews Take: iPad users buy more per order because, in general, iPad owners are richer than users of lesser devices, not to mention taller, healthier, better educated, and far more charitable.

Anyone considering an Amazon Misfire Phone should instead opt for an “I’m an idiot” tattoo. It says the same thing and it’s cheaper, too.

Related articles:
Amazon’s Misfire Phone: How Jeff Bezos failed – June 19, 2014
Amazon’s Fire Phone might be the biggest privacy invasion ever – June 19, 2014
Analyst: No impact to Apple iPhone from Amazon ‘Fire Phone’ – June 19, 2014
Amazon launches shopping machine masquerading as a phone – June 18, 2014
Amazon Fire Phone’s Firefly feature: Apple’s iPhone already has it – June 18, 2014
Amazon shows ‘Fire Phone’ with 4.7-inch 3-D display to court mobile shoppers – June 18, 2014
Analyst: Amazon smartphone no threat to Apple’s iPhone, but Android phone makers beware – June 17, 2014

26 Comments

  1. ..and if you are already an Amazon prime member probably save some money doing so too. let’s be honest. It’s a shopping catalog that doubles as a phone c’mon.

  2. Backwards reasoning. People don’t buy Kindles unless they already like Amazon. They’re not shopping at Amazon more because they bought a Kindle.

    And people who buy this phone are not looking for an easier way to shop at Amazon. They’re looking for a cheap smartphone. So that doesn’t necessarily translate into more sales of other stuff at Amazon, although the people who buy the Firefly probably shop at Amazon a lot already.

    1. Not necessarily. Kindle purchase may well be a consequence of already being an Amazon customer. But a smartphone? There are people who possibly never shopped on Amazon, but want a smartphone. If Amazon advertises this on mainstream media, these people will become new Amazon customers.

  3. I have no interest in a Fire Phone, but I already buy a lot of stuff on Amazon through my iPhone and iPad. It doesn’t seem as if the Fire Phone makes that any easier other than having a dedicated button. I guess that makes sense if that’s all your doing with your phone.

  4. I am full into the apple eco system for many years. I am glad that new phones come from lots of different companies. Competition is good and I don’t get so hung up on what someone else buys.

  5. I own an iPhone 5s, 4s, 4, 3G, iPad 2, The New IPad. But I definitely am not Richer, more educated, smarter, taller, healthier than any Android owner. I just like Apple EcoSystem & Trust Apple IOS from getting Viruses & Malware. It is convenient & I feel my data is safe!

    1. I’ve been watching who uses what when seeing movies, mall or just out and about. In the high average iOS users are HOTTER while Android users are frumpy, obese, drab wear, very baggy and poor hygiene. Ok I know that’s not really true…but then again why is it that I see Android users almost always fitting the description! LOL

    1. It seems every Amazon device since the Paperwhite has been sold at-cost or for a very small profit. The Fire Phone will probably be the first to be sold at a double digit margin.

  6. News flash, people who buy iPhones spend more money at Apple than those who don’t have iPhones. People tend to buy from companies they like. Surprise surprise.

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