Analyst: Apple Unaffected By Amazon Fire Phone

| Apple Stock Watch

Amazon's new Fire Phone isn't going to be anything to keep Apple awake at night, according to Cantor Analyst analyst Brian White. In a note to clients covered by The Wall Street Journal, Mr. White told clients, "We do not anticipate any impact to Apple’s iPhone franchise."

Brian White is the odd analyst who constantly cheers Apple, and generally has a positive outlook about whatever news comes from Cupertino. This is a nice change from all the public proclamations about Apple's impending doom and armchair quarterbacking about what Apple "must" do to be successful.

After pointing out the lack of success by Google's Nexus One and Motorola Mobility's Android offerings, Mr. White said, “In our view, today’s announcement represents another attempt by Internet-related players to compete in the mobile device world. These initiatives have left Apple unscathed in recent years.”

Another part of the note claims "Apple is unique in its ability to develop hardware, software and services that work together seamlessly.”  This has long been a basic pillar of Apple's strength, and recognizing that is one of things that sets Mr. White apart from many other analysts.

It's interesting to note that Apple stock is up 15% so far in 2014, and Amazon stock is down 16% so far this year. 

Shares of $AAPL ended the day lower at US$91.86, down $0.320 (-0.35 percent), on light volume of 35.5 million shares trading hands.

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I get that this is a smartphone that comes with a pre-fab ecosystem and if you're invested there it's a great tool for accessing and acquiring content in that ecosystem. It won't even be out for a few weeks yet, so there's no way to tell how useful the actual device will be or what the user experience is like. So far all we have is the live event, which left me with the impression that the Fire Phone is a thing to buy so I can buy more things.

With Apple devices I feel like I can buy things if I want to, but it's not the purpose of my device. I understand why on paper it seems there's no real competition for the iPhone here, so I wonder how it will actually play out once the device is in the wild.



Amazon will sell a good number of these; but I would be concerned about many things with this product. If they decide to pull the plug on this at some point the buyer will own a dead end device.

Constable Odo

All Apple has to do is go about its own business of selling high-quality hardware with a strong ecosystem and great customer support.  Let the other companies do their own thing.  Apple has such a great sales edge when it comes to their Apple retail stores.  I couldn’t imagine why anyone would have thought the Amazon Fire Phone would disrupt Apple’s iPhone business in any way.  Apple sells tens of millions of iPhones every quarter and I’ll bet the best Amazon will manage will be in the one million to three million range especially with just one carrier for now.  The Fire Phone is basically geared for Amazon shoppers and it should work well at that task.

Lee Dronick

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