Home » Stocks » Amazon Shows Desperation and Panic Like Fear. That would be the Bear Case Scenario $AMZN, $AAPL

Amazon Shows Desperation and Panic Like Fear. That would be the Bear Case Scenario $AMZN, $AAPL

Amazon has dropped the price of its Fire Phone to $0.99 or basically free with a two year contract. When you need to give away your product for free that completely negates the value added proposition. Your Brand is toast.

The retail space is filled with clever price competition strategies. Cutting your price a day or two before a competitor’s product launch, smacks of desperation.

The more appropriate strategy would have been to offer the fire product at $0.99 for say two or three months before the Apple launch. It was a very safe bet that they would launch in September so announce on July 4 an Independence Day program to cut costs and allow Americans to shop shop shop.

You would have converted every available sale in advance and present Apple with a scorched earth defense. If the scorched earth defense did not work that Amazon would have determined that their product was not resonating.

George Gutowski writes from a caveat emptor perspective.

 

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