Apple Inc. (AAPL), SAMSUNG ELECT LTD(F) (SSNLF): Change Is The Only Constant

So, what would work for Amazon?
Giving away a device for free will crush earnings. However, the smartphone could be a conditional offer on an Amazon Prime membership. Though Amazon.com, Inc. (NASDAQ:AMZN) loses considerable money on “free shipping” under the program, Amazon Prime actually encourages spending. So, the company can more than make up for shipping costs. With a smartphone, there is a huge potential for chargers, earphones, cases, gizmos, and other sales.

Another way Amazon.com, Inc. (NASDAQ:AMZN) could give away the smartphone is, buy a certain amount of our products, digital content, or services; and you’ll get a smartphone for free. If Amazon gives away a smartphone or makes it a conditional offering, it will encourage people to switch from Apple Inc. (NASDAQ:AAPL)/Android to the Amazon ecosystem.

Foolish conclusion
In the changing landscape of the technology industry, someone has to break the dominance of the Apple Inc. (NASDAQ:AAPL)-SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF) duo. And that would be a company with a strong ecosystem: digital media, content, services, apps, software, and a solid distribution platform. Amazon.com, Inc. (NASDAQ:AMZN) has it all. So, it should have an edge when it ventures into the smartphone industry. Whether it offers a smartphone for free or on a conditional offer, Amazon has the capabilities to snatch customers away from Apple and Samsung.

The article Will This Company Break Apple and Samsung’s Smartphone Dominance? originally appeared on Fool.com.

Vikas Shukla has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Apple. The Motley Fool owns shares of Amazon.com and Apple. 

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