Amazon Prime Marches On, as Fire Phone Stumbles

Amazon Prime Marches On, as Fire Phone Stumbles
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Prime Membership Steady at 29 Million US Members
CIRP Can't Find Phone Owners

Consumer Intelligence Research Partners (CIRP) today released analysis of buyer shopping patterns for Amazon, Inc. (NASDAQ:AMZN) for the July-September 2014 quarter.

This analysis indicates that Amazon Prime continues to attract members. In contrast, Amazon's new hardware offering results are mixed. Amazon Fire Phone has achieved virtually zero market share, while Amazon Fire TV has gained some traction.

As of September 30, 2014, CIRP estimates that in the US, 41% of Amazon customers are Prime members, which translates to about 29 million Prime members (Chart 1).

Chart 1: US Amazon Customer Affiliations - Third Quarter 2014
2014-10-29-chart3.jpg

Amazon Prime membership continues to grow. US members increased from about 27 million in the second quarter of this year to an estimated 29 million this quarter. For the last three quarters, over 40% of Amazon customers have reported having a Prime membership.

Our data show that Amazon hardware devices have mixed results. Effectively zero percent own an Amazon Fire Phone. In contrast, approximately one quarter of US Amazon customers have either or both of a Kindle Fire tablet and Kindle Reader, and about 5% report owning the new Amazon Fire TV set-top box. Though anecdotal accounts suggest Amazon has sold a few thousand Fire Phones, none of the 500 recent Amazon customers in this quarter's survey reported owning one.

Amazon Visa cardholder participation has remained steady at 15-17% of total US customers. This program also creates more loyal Amazon customers, Participants in all of these different programs spend twice as much annually as other Amazon customers.

CIRP bases its findings on surveys of 500 US subjects who made a purchase at Amazon.com in the period from July-September 2014. For additional information, please contact CIRP.

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