3 Ways Amazon’s Phone Will Shock You

Amazon’s (AMZN) much-ballyhooed announcement hits tomorrow.

Rumors have been swirling for months that the online retail Goliath plans to launch its very own smartphone, and tomorrow’s announcement is expected to make it official.

In a leaked photo, the smartphone doesn’t look particularly new or exciting.

It has camera sensors strategically placed on all four corners of the display, and a standard front-facing camera that would likely be used for video chat.

The phone will reportedly use a Qualcomm (QCOM) Snapdragon processor and run on a variant of Google’s (GOOGL) Android operating system. That is, since Amazon’s tablets and Fire TV already use Android.

However, when it comes to this smartphone, I just discovered that there’s more than meets the eye.

As it turns out, Amazon has a few neat tricks up its sleeve.

But is it enough to make Amazon’s stock – which is down 18% year-to-date – a screaming “Buy”?

Or is this a “too little, too late,” desperate stab at the mobile market?

Amazon’s hook here is threefold.

First, the smartphone will have a screen capable of displaying 3-D images without having to wear any glasses. Images that appear to gravitate above the screen, similar to a hologram, definitely pique my interest.

Second, the device is expected to allow users to navigate through content using just their eyes. The technology is called “retina-tracking technology.” I must confess that I’m intrigued by the prospect of a hands-free adventure.

Third, the phone gives users an environment to easily navigate Amazon’s massive ecosystem, including all of its third-party vendors and a beefed-up Appstore. Users can pay for their purchases in a single click with their Amazon credentials. I welcome this, too.

Amazon’s ace in the hole in all of this is its payment feature called “Login and Pay,” a direct shot over PayPal’s bow.

In addition to being integrated into the first-edition phone, Login and Pay lets merchants put a “Pay with Amazon” button on their checkout pages.

As a payment processor, Amazon could be widely accepted by consumers. A recent survey found that 37% of the younger American consumers would welcome Amazon as their primary banker.

I hated the idea of Amazon having its own smartphone when I first began researching it.

But now, I like it enough to recommend nibbling on shares ahead of the big unveiling tomorrow.

Of course, I could be wrong about all of this… But I doubt it.

Robert Williams

Founder, Wall Street Daily

P.S. Will the launch of Amazon’s smartphone be enough to skyrocket its stock? Join me on Twitter @RWilliamsWSD to discuss these latest developments and tomorrow’s unveiling of Amazon’s first smartphone.