According to the report from the Wall Street Journal, Amazon is currently developing a wide range of products which includes audio-only streaming devices and as well as Smartphones with 3D capabilities without requiring special glasses. However, the Wall Street Journal made it clear that some or perhaps all of the aforementioned products may not be released.
The Audio Device
The Wi-Fi capable audio only device was originally meant for streaming in television sets and speakers. It would make a significant impact in the music industry. Perhaps, this can be a complementary device which creates a digital music ecosystem. Apple already had such ecosystem with its Airplay device which enabled iTunes users to listen to the audio through any speakers or stereo. This could also mean that Amazon plans to provide complementary product when it plans and decides to launch a service for music subscription. The company is sighted to have exploratory discussions with certain record labels for such service that can compete with Rhapsody, Spotify, and other similar on0demand services. Perhaps, it was intended to complement an already existing product such as Amazon’s cloud-based streaming service and music locker, the Cloud Player. The Cloud Player app is available for Samsung TV, Roku and Sonos. Whatever the case is, this Wi-Fi audio streaming device can give Amazon customers a better music and audio experience.
The Smartphone product also has a potential impact in the music industry but it is not clear as to how it could do it. The market shares of the mobile phone OS will likely be affected if this new entrant comes in. This Smartphone by Amazon will most likely run on an Android OS since the company’s Kindle Fire tablets already run on the same OS. The android could then snatch a portion of the market share from Microsoft’s Windows Phone and Apple’s is by attracting new customers through Amazon’s Smartphone. This can be possible since Amazon has a huge customer base of age 13 and over reaching 42 percent of the U.S. mobile subscribers as of March according to reports.
With this possible new entrant, this change in mobile phone market shares could also affect certain music-inclined apps and stores. Furthermore, it could also mean that Amazon can increase downloads sales though the Amazon MP3 app which is available to Android users already. This could affect the market for both Android apps and iOS apps. It would be unfavorable for the latter since there are a number of people who are unable to use apps for iOS only.