But Amazon isn't "customer focused" when it comes to strategic threats - for example Android - and Amazon's response - the Fire phone, Their App Store.

So the question is - are low cost goods, coming pretty directly from chinese manufacturers, often counterfeited and sold at a low price a strategic threat to Amazon ?

They might, if you look at alibaba, but also on the tendency of capitalistic markets to stabilize on focusing on crap: just look at the quality of white goods, planned obsolescence, the security of the consumer IOT, etc etc.