SunTrust's Bob Peck Comments On Amazon Fire

In a note released Thursday, SunTrust analyst Bob Peck provided insight into how he anticipates the launch of Amazon's AMZN Fire phone will impact the company.

Looking to the first year, Peck is forecasting a potential $2.9 billion lift to revenues and a bump of about $550 million to gross profit. He noted this represents three and two percent of 2015 consensus estimates, respectively, for revenue and gross profit.

Additionally, Peck provided five reason why it makes sense for Amazon to have its own phone rather than just having apps for other platforms:

1. Data: This will allow Amazon access to valuable consumer behavior data.
2. Friction: Amazon will be able to reduce friction in the mobile environment and alleviate its reliance on partners, such as Google and Apple.
3. Scale: The mobile market is larger than that of both PCs and tablets. The Fire will provide Amazon a direct purchase point and allow the company to embed itself further into the daily lives of consumers.
4. Innovation: Amazon is pushing innovation leading the industry to faster development of apps which can grow eCommerce.
5. Optionality: The launch of the Fire opens up the possibility for expansion into other areas, such as payments, mobile ads, and local services.