Why Amazon's New Phone Threatens Retailers

Built-in showrooming spells trouble for bricks-and-mortar stores

Amazon today unveiled its highly anticipated smartphone—dubbed Amazon Fire Phone—that will give the e-commerce giant yet another piece of ammunition against retailers in its goal to own online shopping through showrooming and price comparisons. 

The Seattle-based company's phone includes a feature called Firefly (which appears to be a souped-up version of its mobile app) that claims to recognize more than 100 million products. Firefly employs the phone’s 13-megapixel camera to detect QR codes and Web links on packages to drive traffic to Amazon items.

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