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It looks as though Amazon is developing its own smartphone alongside Foxconn, the Chinese company that
currently manufactures the iPhone for Apple.
currently manufactures the iPhone for Apple.
Amazon was once “just” a mere online retailer, albeit the one that everybody knows and a lot of people love. But when it released the Kindle eBook reader Amazon morphed into a hardware company as well. The reasoning was solid: sell the hardware that people will then use to buy digital goods on the website. Amazon wins all-round.
The company then entered the tablet market in 2011 with the same goal in mind. The Kindle Fire is a cheap 7-inch tablet built with an Android-based overlay that puts Amazon content at the very heart of the user experience. According to Bloomberg, Amazon is now turning its attention to the smartphone market.
Amazon and Foxconn are thought to be working together on the smartphone which earlier speculation suggested could arrive in time for the 2012 holiday season. With Amazon also expected to announce second-generation Kindle Fire tablet (or tablets of different sizes) over the next few months it would make sense if all these devices were unveiled together.
Our own Andrew Dodson questions the validity of an Amazon smartphone at this late stage of the game. He’s absolutely right to wonder if the company would be able to sell content on a small screen in anything like the quantity it has managed on a larger screen. However, smartphones are still a growing market, with many people not having made the switch from feature phones, so a low-cost option which sees Amazon selling the hardware at cost price and making money through the sales of goods makes sense for the company and consumers alike.
I’d expect to see an Amazon smartphone announced within the next three months. It clearly won’t be an iPhone killer, but it will be a cheap alternative for those still hunting around for such a device.
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