Amazon (AMZN) Fire Phone Lacks App Ecosystem, Piper's Munster Says

Piper Jaffray analyst Gene Munster weighed in on Amazon.com's (NASDAQ: AMZN) new Fire phone and is not overly convinced it will be a success.

"This first take on a smartphone is part of the continued evolution of the Fire platform, which, like Apple/Android, now includes an ecosystem of a smartphone, tablets, and a TV product," Munster comments. "While we continue to view the Fire ecosystem as two tiers below iOS and Android, we do note that over the past couple of years Amazon has developed a robust digital content library to be paired with ts hardware. Separately, the Firefly software that works to identify objects presents an opportunity to drive additional eCommerce transactions."

He added, "Overall, we believe that this phone is a good start, incorporates magnetizable features, but lacks an app ecosystem
(is about 1/5 the size of the Android and Apple app stores) which is critical to the success of phones.:

The firm maintained an Overweight rating and price target of $420 on Amazon.

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $334.38 yesterday.

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