Connectivity

Why Amazon Needs Its Own Phone

Mobile e-commerce is booming, and an Amazon phone will foster a captive customer base.

The retail industry will continue to be transformed as it becomes even easier to buy things online.

The global popularity of mobile computing has led to an explosion in mobile e-commerce. The amount of money spent using applications on phones and tablets grew by 117 percent between 2012 and 2013.

So it makes sense that Amazon, the leader in online commerce, would want to enter the smartphone market: if the company has more control over the mobile user experience, it will be in a better position to funnel consumers to its own online stores. Much like the original Kindle e-reader and the Kindle Fire tablet, an Amazon phone would give users a direct line to Amazon content—in this case retail goods—and give Amazon the opportunity to minimize the friction in retail transactions.

The shift to mobile buying is happening quickly. Last year, mobile e-commerce represented nearly 21 percent of all e-commerce. By the end of next year, more than a third of all e-commerce could be occurring via mobile devices.

Want to go ad free? No ad blockers needed.

Become an Insider
Already an Insider? Log in.

Uh oh–you've read all of your free articles for this month.

Insider Premium
$179.95/yr US PRICE

More from Connectivity

What it means to be constantly connected with each other and vast sources of information.

Want more award-winning journalism? Subscribe to Insider Basic.
  • Insider Basic {! insider.prices.basic !}*

    {! insider.display.menuOptionsLabel !}

    Six issues of our award winning magazine and daily delivery of The Download, our newsletter of what’s important in technology and innovation.

    See details+

    What's Included

    Bimonthly home delivery and unlimited 24/7 access to MIT Technology Review’s website.

    The Download. Our daily newsletter of what's important in technology and innovation.

/
You've read all of your free articles this month. This is your last free article this month. You've read of free articles this month. or  for unlimited online access.