This is a New Product idea for Amazon. It is all about repositioning their failed phone into a sleek, low-cost, private business phone.

1. Amazon Fire Phone
Alexandra Granhold, Blake Imhoff, Jakeb
Jones, Rachel Dean, Maryellen Weiser

2. Key Insights about Industry
● Very, very high market potential
○ Samsung holds the most market share in the industry, not a lot of
big players are dominating the market.
○ Highly competitive industry.
○ Consumers have strong opinions regarding brands of their phone
of choice.
○ There are not many smartphones out there that have a full-feature
set that have higher-end phones have, with a low price

3. Apple Samsung Huawei
● Top-tier phones
● iOS
● Ecosystem supported
● High brand loyalty
● Style
● Privacy
● Water-resistant
● Excellent Camera
● Android
● High-to-low end lineup
● Google services built in
● Higher resolution
screens
● Water-proof
● Big battery
● Great speakers
● High end lineup
● Android
● 5G support
● Innovative
● Huge savings
● Big battery
Implications for your new product
opportunity

4. Global Market Share ‘09-’19

5. Market Structure Chart
High Cost
Most
Privacy
Least
Privacy
Low Cost

6. Questions you might ask?
● What do you like about your business phone right now?
● What problems are you having with your phone right now?
● If you could change anything, would you?
● Do you think there’s a phone on the market that is sufficient as a
working business phone?
○ If so, which?
○ Do you have it?
● What do you do the most frequently on your phone?
● What functions are the most important to you? And why?

7. Amazon Fire Phone Concept Sketches
Lock Button
Volume Buttons
Fire Phone Dimensions:
5.625in. X 2.875in. X 0.35 in.
Headset Speaker 8 MP Camera
Back Home Menu
4K
Screen
12 MP Camera
Flash
Rear
Microphone

8. Amazon Fire Phone Concept Sketches

9. Benefits & added value relative to
competition
Enable Amazon services and discounts
● Alexa
● AmazonPay
○ Easier transaction (ex. apple pay)
● Prime abilities (1 yr free) With discounts every year after

10. Product Attributes/Features
● 1 year free/discounted Amazon Prime
● End-to-end encryption
● All day battery
● Screenshot protection
● Low price
● Easy-connecting/switching bluetooth technology
● VOIP support
● Unlimited Cloud Storage Space
● Caller ID
● Stylus/clicker for presentations

11. Packaging Description
● Simple
● Standard
● Minimal

12. Positioning Statement
For business professionals who need a secure phone, Amazon Fire
Phone sets itself apart by providing privacy at a low cost. Amazon
Fire Phone has innovative features such as screenshot protection
and end-to-end encryption while utilizing technology already used in
our tablet line.

13. Amazon’s Current & Suggested Branding
Strategy
● Selling everything A -> Z, yet they do not have a private-label cell phone
currently on the market.
● Amazon has many business centric ventures, like Amazon Web
Services and Next Gen Stats
● Amazon’s IT expertise bodes well for marketing the high level of
support that business owners will receive when buying phones for their
employees.
● Amazon has taken a new path towards respecting the privacy of its
consumers.
● Amazon is well known for their line of low-cost, easy-to-use tablets
● Therefore, it makes sense for Amazon to create a new smartphone
using the expertise they’ve gained from their business, IT, and tablet
expertise.

14. Sales Forecast Using ATAR
● Population of Target Market: 21.5 million (# of professional workers in the US,
Pew Research Center)
● Awareness: 70% (large, targeted ad campaign through business mags, tv
ads on CNNBusiness and Fox Business, trade shows, etc.)
● Trial: 25% (trade show booth attendance, demos in amazon stores, sales reps)
● Availability: 50% (available through AT&T stores [business centric],
Amazon.com, and direct purchase through reps)
● Repeat: 60% (Based on a “demo run” in a business, then a full rollout to other
personnel/departments in the business)
● Ongoing customer base = 21.5m x 0.7 x 0.25 x 0.5 x 0.6 = 1,128,150 ongoing
customer base (this represents consumers, NOT SALES)
● If this phone becomes a successful smartphone line, we can expect rebuys
every 1.75 years (statistic provided by counterpointresearch), with ~60%
staying loyal with their current smartphone brand (based on industry
standards, bankmycell.com)

15. Sales Forecast Using ATAR (contd.)
● Price per unit: $735.65
● Ongoing customer base: 1,128,750
● Avg number of phones bought per customer per year: 0.57 (1 new phone
every 1.75 yrs)
● Android smartphone annual growth rate (5 yr avg, International Data Corp.):
2.1%
Year 1 Sales: $473,308,014 = 1,128,750 x .57 x 735.65
Year 2 Sales: $483, 247, 482 = Year 1 sales x 1.021
Year 3 Sales*: $493, 395, 679 - Year 2 sales x 1.021
*For perspective, the Year 3 sales will account for just 0.8% of Amazon’s total revenue that
year

16. Work Cited
● https://www.statista.com/statistics/271496/global-market-share-held-by-smartphone-
vendors-since-4th-quarter-2009/
● https://www.fool.com/investing/2019/01/10/your-next-amazon-package-could-include-
a-small-sur.aspx
● https://smartphones.gadgethacks.com/how-to/5-best-phones-for-privacy-security-
0176106/
● https://www.huawei.com/en/?ic_medium=direct&ic_source=surlent
● https://www.worldatlas.com/articles/all-about-the-cell-phone-industry.html
● https://fortune.com/2018/07/10/cell-phone-wireless-industry/
● https://www.amazon.com