“Jeff Bezos is a big fan of the Costco model, where you sign up to be in a retail club, and then they serve you better,” says Needleman. “They give you freebies and free shipping — all to make it easier for you to buy stuff from them, and the price is competitive.”
Despite Amazon’s history of revolutionizing online behavior, Needleman isn’t certain the Amazon smartphone will be as groundbreaking.
“We’re not sure the consumer will be interested in having such a commercial product as their main communications device. For me, that is the biggest question.”
Watch Amazon’s teaser video for Wednesday’s event: