The financial implications of such a deal are interesting because even the low wholesale rates that Amazon negotiates with a service provider will likely be greater than $10 per month, so there’s little doubt that Amazon will be losing money on Prime subscribers who take advantage of the offer. Of course, that may be an acceptable trade-off for gaining market share, especially considering that Amazon’s retail business was established on razor-thin margins and occasional losses.
Such an agreement could also be a mixed blessing to the partnered cell phone service provider, which would gain a bulk quantity of accounts, but risks cannibalizing potential or existing customers who would otherwise have paid a higher rate directly to the carrier.
Amazon is no stranger to the wireless industry, as the company plans to begin testing its Project Kuiper satellite internet service next year. In 2014, Amazon also marketed a gimmicky Fire Phone, which was largely considered a flop, and was quickly discontinued thereafter.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Entertainment News Click Here
