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The Fire Phone Debacle and What It Means For Amazon's Future
HughPickens.com points out an article at Fast Company that dug into the creation of Amazon's floundering Fire Phone to figure out why the company pushed so hard to bring it to market. The piece is an indictment of Jeff Bezos's determination to make the Fire Phone into a competitor for an already-saturated high-end smartphone market. "This wasn't some vague guideline from an executive busy running other parts of the business; based on interviews with more than three dozen current and former employees, most of whom were deeply involved with the project, the CEO drove every aspect of the phone’s creation from the outset."
Now that Amazon's growth is slowing and profits have yet to be seen, investors and analysts have run out of patience for gambles like this one. "What makes the Fire Phone a particularly troubling adventure, however, is that Amazon’s CEO seemingly lost track of the essential driver of his company’s brand. It’s understandable that Bezos would want to give Amazon a premium shine, but to focus on a high-end product, instead of the kind of service that has always distinguished the company, proved misguided."
Now that Amazon's growth is slowing and profits have yet to be seen, investors and analysts have run out of patience for gambles like this one. "What makes the Fire Phone a particularly troubling adventure, however, is that Amazon’s CEO seemingly lost track of the essential driver of his company’s brand. It’s understandable that Bezos would want to give Amazon a premium shine, but to focus on a high-end product, instead of the kind of service that has always distinguished the company, proved misguided."
Amazon has tried to create their own product lines with the Kindle and Fire branding, but unlike Sears' branding for Craftsman and Kenmore, the Kindle and Fire devices are less ends, and more means, at least in my eye, and when they hamstring the phone version by basically taking everything useful out of Android that made it popular (ie, Google's through-the-internet connectivity for 'cloud' stuff) they take away most of the means for which I would use the device.
I honestly don't care what brand of smartphone I have any more than I care what brand of business computer I have at work, in that the phones I buy run vanilla or close-to-vanilla Android, and the computers my work supplies for me generally run Windows, or I install Linux on them myself. The Fire Phone isn't really Android in that what I want to use Android for isn't there, and the experience would be just as foreign to me as using an iPhone or a Blackberry or a Windows phone.
Amazon over-valued their own brand. Amazon is a service more than a product, and attempting to be a product hasn't worked as well for them as they expected.
Do not look into laser with remaining eye.
I was an an engineer in that team during the first incarnation of the project. The article is very very inaccurate.
- team was not scrapped by jeff, at least not until large number of people walked out due to mismanagement
- prototypes that worked (and were of phone size & shape) existed more than 2 years before launch but then (as mentioned) team walked and it all had to be scrapped
- hw team often undercut sw team by replacing components and not telling anyone about it
- hw team often made mistakes of the very basic variety (two separate sets of pull-ups on a single i2c bus)
- some parts choices were motivated by personal interests of people in the hw team, even against their own data & analyses. This was allowed to proceed
- some of the management made the team look very foolish in front of vendors (asking questions that made no sense in the current millennium)
- sw team was kept busy by endless meetings with no end in sight, which significantly cut into any chance of productivity
False, the effect is not very great. Plus, do you not know what an index fund is (per GP)? The fund management takes care of that for you.
For example, the Vanguard 500 Index fund is indeed up 48% in that time period. If you'd invested $10,000 in the fund on 12/1/2012, then the value in your account would today be $14,843.15, with zero additional work on your part.
http://quotes.morningstar.com/fund/VFINX/f?t=VFINX
We know where leadership by an anti-intellectual "strongman" who scapegoats minorities and likes boisterous rallies goes
What a short sighted midget.
How do you think Amazon ended up as on of the world's largest companies, completely dominating all retail ecommerce, and being the sole leader in the booming cloud industry. If Bezos had asked VCs, banks or or anonymous cowards for advice advice he'd probably be the operator of a couple of walgreen's or McDonald's stores now. Or maybe owner of Blockbuster franchise. You can't build something new and successful if you don't take a few risks.
-- Another senseless waste of fine bytes.