Amazon.com stepped into the smartphone ring Wednesday, unveiling the Fire Phone, a 4.7 inch device with 3D capabilities, a 13 megapixel camera and free photo storage.
The phone is Amazon's bet that it can take on Apple and Samsung, while drawing more customers into its Prime subscription service universe. It plugs directly into Amazon's Prime Video, Prime Music and cloud storage services. It is also closely integrated with the company's Kindle reading apps and Audible audiobooks services.
Amazon said the phone, which will be available exclusively through AT&T, will start at $199.99 with a 2-year contract for a 32 GB model. A 64 GB model costs $299.99. Without a contract, the phone will cost $649.99. Pre-orders for the phone begin Wednesday, and the phones will be available starting July 25.
Playing up Amazon's devotion to the individual customer and the media ecosystem it has built with its Prime subscription service, chief executive Jeff Bezos said that Amazon's growing universe of services set the phone apart.
Amazon is offering a free year of Amazon Prime membership, a $99 value, for those who buy the phone; current Prime subscribers will be able to add 12 months to their current membership at no cost. That is a limited time offer, though Amazon did not specify how long the promotion will run.
The phone lets you scan products in stores, so that you can buy things directly from Amazon, using a new service called “Firefly.” Users can even use the phone to “listen” to songs or videos, and link users to places to buy them. It can also recognize art, and scan text such as phone numbers and then immediately place a call.
The phone has a quad-core 2.2 GHz processor, 2 GB of RAM and a screen meant to reduce the amount of glare from sunlight. It also sports a 13 MP camera, has advanced image-stabilization software, and includes unlimited photo storage through Amazon's Cloud Drive service. The company also introduced "tangle-proof" earbuds, according to a report from Re/Code.
There have been rumors for years that Amazon wanted to jump into the smartphone market. The anticipation wasn't lost on Amazon. The company sent invitations to all of its customers -- 60,000 of whom applied and 300 of whom made it in to the event. (It also sent a rather enigmatic gift to reporters set to cover the event: a copy of Bezos's favorite childhood book, "Mr. Pine's Purple House," which focused on the importance of standing out from the crowd.)
The tech giant has already released a line of tablets to accompany its Kindle e-readers, and even tried its hand at a set-top box. And its growing suite of entertainment options, marked most recently by the release of a streaming music service for its most loyal customers, can make its devices more appealing.
But smartphones are a whole different animal. While the markets for other consumer electronics can be fluid, the smartphone industry is dominated by Apple and Samsung, which control about 50 percent of the world's market between them.
Amazon appears to relying heavily on the goodwill it's built with consumers to differentiate itself in that tight market.
"The most important thing we've done is to earn trust with customers," Bezos said, according to a report from Mashable.
(Disclosure: Amazon chief executive Jeffrey P. Bezos owns The Washington Post.)