Amazon Ready To Take On Samsung Android Juggernaut With New Smartphone

We’re only a few hours away from the unveiling of the Amazon smartphone. In anticipation of that event, Chitika released data showing the distribution of Android traffic in North America, based upon “tens of millions of U.S. and Canadian smartphone- and tablet-based online ad impressions generated within the Chitika network from June 2 through June 8, 2014.”

According to the company’s data, tablets generate 21 percent of all Android traffic in the region while smartphones drive the remaining 79 percent. Samsung is by far the dominant company, however. Amazon devices (Kindle tablets) were responsible for just under 7 percent of traffic in Q2, according to Chitika.

Yet, there’s also evidence that Kindle sales have stalled, hence recent aggressive discounting by the e-tailer.

Put in larger context, all North American Android devices combined generate somewhat more than a third of all mobile web traffic despite the larger installed base of Android hardware. This remains something of a mystery to me.

While there are high hopes that an expected “3D” smartphone UI will represent something of a breakthrough for Amazon, the company will need to find the right mix of quality, novelty, content and aggressive pricing to make a splash in the handset market — especially vs. juggernaut Samsung.

Amazon’s “secret weapon” is its loyal base of users. According to Consumer Intelligence Research Partners:

• 42 percent of Amazon customers have Amazon Prime, making 27.8 million Amazon Prime members
• 48 percent of Amazon customers have an Amazon Kindle Fire, or 31.3 million Amazon customers own an Amazon Kindle Fire or e-Reader
• Amazon Prime members spend twice as much as non-members
• Amazon Kindle Fire and e-Reader owners spend 30 percent more than others

While these numbers may jumpstart sales for an Amazon smartphone, it will take much more for the device to be a mainstream success.