Amazon Gears up to Sell Fire TVs

Amazon Expands its Private Label Empire

Amazon (AMZN) is entering the television market, announcing two branded Fire TVs which will include Alexa, its voice assistant. This marks Amazon’s latest push to expand its private label business which already includes apparel, groceries, home decor, and other items.

Amazon is pricing its two new TVs competitively. The Fire TV Omni Series is starting at $409.99, and the Amazon Fire TV 4 Series will start at $369.99. Consumers can purchase the TVs in October from Amazon or through Best Buy (BBY).

TVs Are a Low-Margin Business

By launching branded TVs, Amazon is entering an area of consumer electronics which is known for low margins. Apple (AAPL) has looked at the market for years, but so far has only launched a streaming device and video streaming service, Apple TV+. Low margins likely will not deter Amazon, which has shown its willingness to chase market share at the expense of profits in other areas of its business.

Amazon’s Fire TV operating system has been in Toshiba and Best Buy brand TVs for several years. Amazon said it will continue to maintain its partnerships despite launching competing products. On Thursday the online retailer also announced new Fire TVs from Toshiba and Pioneer.

Competition Heats Up

Amazon wants to differentiate its TVs by equipping them with far field voice controls. This technology enables users to ask Alexa questions without a remote. The TVs will range in size from 43 to 75 inches and boast 4K resolution. Later in the year Amazon plans to roll out an update which will let customers control smart devices in the home via a dashboard on the TV.

Amazon’s FireTV streaming sticks are currently leading in the industry, but rival Roku (ROKU) is closing in. This has prompted Amazon to spend more money on its streaming service and smart devices. It will be interesting to see how consumers respond to Amazon’s latest big initiative.

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