You, im excited to tell the answer is yes. [applause] bezos was key to point out how the phone was different from the wide selection already on the market. It has 3d viewing capability and Image Recognition called firefly. Take a picture of anything and it will link you to amazon. Com. At t is the exclusive carrier of the fire found. For 199 andarket ryeudes a year of free membership. Cory johnson is live in seattle where it all went down. You got to try out the phone. You got your hands on it. Is it any good . Knows . Things look nice when you first try them. It is in the details. Two of the features features that were interesting and might abilityl, one is this to see things using multiple dimensions. , what it doesks is it shows a hologram image on the phone. When you look at something and turn the phone a little the image can adjust like 3d mapping things will do. As you look at it it adjusts and allows you to have the experience of seeing the images, a 3d image behind the label. Interesting. Rks is it has a couple of cameras that can tell how you are looking at the phone and the camera makes a map and adjusts. The other thing that is interesting, listen to jeff bezos where he talks about this. Listen to how he describes it. What if there were 1000 redraw standing by to the picture every time you move your head . What if they could do it 60 times a second . Here it is. This notion of being able to the image as you as the recognizes you are farther away. It is a cool factor other phones dont have. Over and sayk what is that thing. They need the attention to get the business. Amazon flew in a lot of customers. What has been the reaction . That is neat but i dont know if i need to use that every day and give us the phone i already have. That is the thing. You want to give up a phone that has instagram, google map application that you are used to . This is the switching problem that is difficult. That is why they have to have the cool factor. One of the neat things they have is 24hour Customer Service. Push a button and talk to someone who can help you and take over your phone. If you think of apple and the genius bar, how genius that turned out to be, this is a portable genius bar and it could prove to be a valuable feature for amazon at securing people on he amazon echo speer ecosphere. I want to bring in brad stone. And a managing partner at venture firm s k ventures. Thank you for joining us. I will start with you. Your first day . This is a phone that is going to help you buy stuff. The coolest thing was firefly. You can look at anything and it will say we sell that and that is a way to buy it. It maps it out with its camera and then it looks it up on amazon. Com, the everything store. I already buy a lot of stuff on amazon. Do i want a phone that will make me spend more money . Hi will real how will realize hers how will retailers feel . Youre not going to win much for doing that. The phone is need. Kudos for getting it out the door after five years of development and coming up with something that is a little bit new with the firefly app. This is a hypercompetitive market. It is priced conventionally. 200 for the two year contract. It is not super cheap. What is your First Impression of this phone . The 3d feature, the six cameras . Is it more than a gimmick . I got motion sick looking at the pictures of the pictures. I hated so much i feel i must be wrong. A couple of as novelty features, solving a problem that amazon has, not consumers. Not keith price. I cant get it at all. Clearly i missing something important but i dont know what it is. Buy this going to phone . Who is going to give up their phone to buy a fire phone . Is there a person you can imagine . I dont think anyone is going to give up their android or iphone. People who dont have a smartphone yet are interested in the guidance that mayday will give you. The kindle fire has made a great name for itself as the cheap tablet. I think it is going to be a disaster. To go back to the sound of this is a fun for amazon fanatics. Maybe they feel older, they dont necessarily have a smartphone already. There may be a small market there. What do you think . You have been talking to people. Is anyone going to give up their phone . I dont have a cynical bone in my body. Im not much of a downer. Ski iould drop think he could be wrong. It could lots of revenue to amazon. This phone could do exactly that. This they may shut off with firefly that would allow you to listen music like shazam, similarly with a clip of game these demos are all rents, but the notion that you could watch tv and home the whole thing, read the whole thing, security or later watching, i think this could be a devise of software that drives a lot of consumption on amazon as a shopping platform. That could be a very big deal. Phones,o much about the per se. But the connection to the computing power. You may be wrong. How do you respond . Cory has more experience of being wrong than i do. [laughter] i couldnt help it. It is possible. It is that feature he is describing, it is already on your amazon app. How often do you use it . Maybe you dont even know it is there. It is there already for people who want to go and do an image id, and i dont see it changing the world. Most people dont know the feature exists. It doesnt strike me as a compelling cell. Sell. Walmart supposedly ruined smalltime america by opening up superstores and driving up business out of town. Amazon has done the same thing now they have a ray gun to say to every Small Business in america and beyond, pointed at stuff in the store, get it cheaper, and get it sent to your stuff while they are building a Delivery Network . This could have a dramatic effect on business because it destroys Small Business by lowering the prices that only amazon could get the stuff, have it waiting for you by the time they get home. That either direction this is going. This is a divisive at will be destroying businesses as we know it in Retail Locations all over the world. This conversation is far from over. We will talk more about amazon after this break. How will the fire phone stack up against the competition . Is it a serious threat to the iphone . That is next. Welcome back. The amazon fire phone is the latest entry in the crowded Smartphone Market with 4. 7 inch display, 3d viewing capabilities and a price tag of 199. How does it stack up with the rest of the competition . Still with us, brad stone, author of the everything store. Skype, ibc chief research officer. Thank you for joining us. Im going to ask you to continue a thought you shared in the middle of the brain. This phone is going to be a disaster. It is going to be a disaster. A lot of the kindle fire is going to be a disaster. To come at it you have to go hard. Kindle fire did not go hard. The same way this does not have a distinguishing feature that you have to have. We dont need little 3d diorama phones. Amazon does not have a good track record of making graphical interface. It is going to be a disaster. That true . Has the kindle fire been a disaster . Has lostndle fire share recently according to our numbers. They have slept. They are in the low they are in the low single digits. It has been tough to gain traction and differentiate. Having said im not ready to call the phone a disaster. I worry about the target customer. It is likely already a smart phone user. It is going to be tough to get them to switch. Brad, your take. Amazon did say they have sold tens of millions of kindle fires. It is hard to determine what success means for amazon, because they do not release numbers. They are selling these devices point is to the intensify the relation with the owner. There is evidence they spend more on amazon. They are necessarily playing the same game as an apple. Computing is going to be everywhere. Doesnt matter how money phones they sell . Tell it to the google glass where or who has been run out of a bar. The Smartphone Market has a long way ahead of that. There is something about holding the devise in your hand. That is one of the things that is troubling for the google glass wearers. Most people dont want to spend their entire day in the amazon ecosystem. It has a low selection. Is amazon movie system lackluster. What amazon does well is sell books and sell stuff. If this phone were free, youre talking about something completely different. You get a subscription to prime. A mailin rebate. The phone without touching it. You can tilt it around. You can do so many interesting things. Are these things that people actually want to use . Do people use survey want these kinds of features . Theres not a lot of data that suggest these are the kinds of features everyone is looking for. They have a risk of being confusing to customers. I want to take a different side of the argument from what you just said. Im not so sure how much amazon really cares about being the marketshare leader for phones. This is the same maneuver that apple has made an google has made. Tying services and creating an interdependent Service Experience to the phone. If they can use this to showcase amazon and get people to buy more, and get people using win. Id, i think that is a you really have to separate the phone business from the amazon business. This is a showcase product. To showcase what you can do it amazon. They do care but making a good foam. They been working on the phone for five years. It is not just a pet project. Not at all. Ank, they are trying to have uninhibited relationship with their best customers. Can may have an uninhibited experience they dont have a fun . It gives them a direct avenue. Likes the amazon ecosystem is not the only one that you consider here. This phone does not have google maps. Lets talk about what the phone doesnt have. No instagram kills Microsoft Windows phone. Windows phone had a suboptimal app ecosystem. It never got great. A cup better and better but missed the marquis apps. This amazon is missing youtube, google maps, snapchat. If you look at the apps youre talking about, those are them. If you dont have that you cant attract people who are more serious about phone use. If somebody is already a great amazon customer, is that the person you need to convert . That is the risk. Prime customers are already the premium customers. They are ready using a smartphone. But you are really getting at is can i demonstrate Amazon Services and can i get people excited about Amazon Services to get them to do more on whatever smartphone they are using over time . Maybe along the way a track a few people to the platform. I think that they have gone overboard and they made it pretty complex in terms of the kinds of things you can do. You can also do it with others, shazam services, other augmented reality services. They are expanding beyond a direction. It is going to be tough to win the existing smartphone customer over with this product. You can say it is about demonstrating Amazon Services. Week,d stone of business and joe brown of wired. Coming up, google glass is becoming a popular tool. Room. Operating how they are changing the future of medicine, next. Welcome back. Im emily chang. We turn now to our wiring the world series where we look at how tech is shaping the future of health care. Surgeons worldwide have been bringing hightech eyewear into operating rooms. We spoke to one doctor but how he performs surgery. Im an associate professor of orthopedic surgery. Ok, glass, record the video. Back in october, i obtained my first pair of google glass and i played around with it a little bit in the operating room. But in january when i went to india, that is when i threw to realize the true power of Wearable Technologies in health care. When we went to india, we met with the press and in front of the press i happen to take out the google glass was of the media saw the google glass and they said, we want to see that in action. We started to do a live broadcast of the google glass surgery. From india, it got broadcast throughout the world. 15,000 to 20,000 people tuned into the surgery. It started to make me realize this could be a tool versus just a cool gadget that is nice to wear. Eyebased technology is going to change health care in a number of ways. Being able to pull up cat scan, m. R. I. s, xrays, patient medical records so that instantaneously that patient has access to health information. Imagine that your surgeon is in the operating room and in a middle of a case comes up with a difficulty or now an anomaly. He can instantly bring in any expert for that material. That expert surgeon can put a put his hands over that map that they have in his office, and now his hand can be seen through google glass, so the expert surgeon can participate in the operating room. Five years down the line, 10 years down the line, i think all of this will have Wearable Technology in some form on us. This is all going to change how health care is delivered in the next century. If you are a u. S. Resident over 18, you are now eligible to purchase google glass and join the Explorers Program for 1500. Jeff bezos says amazon has tens of millions of subscribers. Will a fire for help the company beam anymore . You are watching bloomberg west where we focus on technology and the future of business. Im emily chang. Amazons new fire phone includes a prime membership for one year. Jeff bezos spoke about how popular prime has become and share the secret to its success. What is the real story underneath prime . Persistence, and attention to the smallest of details. How will the new phone impact tens of millions of prime members . Cory johnson who is outside in seattle where the phone was unveiled. Back with us is paul kedrosky. That you talk is about how great prime was but he didnt give any numbers on how many people use amazon prime. Somebody is going to have to shake bezos to get some answers. I think you can walk away with some interesting positioning in the living room. A lot of people of talk about this phone as a standalone devise. Yet, the power of prime plays to the living room story of what this could be. If they get a few people to buy this phone who are already using prime or sign up for prime and then they realize that it is fairly easy to shift in your home from the small screen to the big screen if you own fire tv, maybe they go out and buy that and see the experience you enjoy with prime by owning Something Like that. If you dont understand it they have the call center basically waiting by with mayday. There are people who are going to sign up for prime because of what amazon is doing. Amazon walks away a winner on prime subscribers. We dont how many there are but that is the big number. It has grown significantly. How much do you think this phone is going to boost amazon prime . Dont people have to buy the phone for amazon prime to benefit for this . This is my understanding. The product must be purchased. That is the obstacle standing in the way. Would you buy for your parents . I dont know Anyone Around me, it is not targeted to anyone i know. Aunt orparent or an uncle. They love to consume content. Theyve read. Now and then they make phone calls pretty consume video and audio content. Maybe it is a decent appliance for those kinds of people. At the same time it becomes a gateway product against to get someone on amazon prime. I can see the way to get there. It is just not obvious that is a material number that anyway and may have a big impact on the top or bottom line. They say they have sold tens of millions of candles. How much of a hit does that give how many phones they will se ll . I dont think they really know. I think that is one way theyre going to keep the risk smaller. I think this is not a such a benign devise for grandmothers try to use smart phones. I think this is a trojan horse to take over retail. He have done a deal with at t where theyre making a phone that probably cost 600 dollars to manufacture. They have convinced at t to feed it around the country and subsidize two thirds of the cost to get in the hands of people. It will be used for people to shop almost exclusively on amazon. I think this has the potential to be a great disruptor in business. Amazon has spent a vast fortune in developing it. They have the spreading of this spore subsidize by at t. Are people already stopping exclusively on amazon. Shopping exclusively on amazon. Ory may have a herd of a Company Called best buy. They sold electronics. Going into stores. They are doing great. My point is this is old. The notion this is going to unleash hordes of people previously trapped inside a previous Retail Stores are not isng to be on amazon, that happening already. The people most liquid to do that already have a smartphone phone. The other segment of the uncle,lace is the aunt, grandmother grew. Im not convinced they are going to be the ones to turn around. But now it has steroids. Now what happens instantly. Is making the purchases while they are in the store. You can do that now the amazon app. No one uses it. [indiscernible] the phone has a button on the door,hen you walk in the and bambi can buy and bam you can buy it. Someone made the point earlier that when you look at something you know what youre looking at. You can type in a few words in the Search Engine and find that thing. I will give you the last word here, jon. What do you think . I think that at the end of to day, amazon is looking get more people using amazon all the time. This is a great way to very quickly find out if they can get more people using the world of amazon. All right. Jon erlichman, paul kedrosky, cory, stay with me. You just spoke with an amazon executive about the idea behind the fire phone and how it came to be. What did he have to say . It is hard to get him to say anything. They say a lot in their silence. There focuses so much on the customer, on the people that they want to sell the devise to. One of the guys who led the business of development of this phone about the decisions they made going into this. Listen to what he had to say. It is priced with great value. It is a premium smartphone. Gigs, aned extra 16 incredible amount of innovation. With this introductory office prime, it is a lot to offer. It is a premium phone. It is a great value. It is something customers will appreciate. Why go with one carrier . Had a longstanding relationship with at t. They been a great partner for us on kindle. How so . We have denigrate job within delivering books in 60 seconds for many years. We think fire phone works incredibly faxed fast because of the at t network. Free backup of photos