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Rumor: Amazon developing own smartphone

updated 07:58 am EDT, Fri July 6, 2012

Amazon looking to muscle in on smartphone market

A fresh rumor has Amazon developing its own entry into the hotly contested smartphone segment, reports Bloomberg. According to 'two people familiar with the matter,' the handset will run the Android OS and go head to head with the Apple's iPhone and Samsung's Galaxy S line-up. Amazon is said to be working with Foxconn on the new device, which would join its 7-inch Kindle Fire.

Next to iTunes, Amazon represents the largest online content distribution platform with a range of music, e-books, movies, TV and apps that is even more extensive than Google's own Google Play store. Amazon's profit strategy has so far been driven by installing a forked version of Android that drives customers towards its store for legitimate content, while selling the device at or below cost. It is a model quite different from Google, which distributes its Android OS free while aiming to drive revenue through ad clicks in search and map results. Apple's model differs again, with the iTunes store principally existing to drive sales of its more expensive hardware.

Although details on the new smartphone are sketchy at this early juncture, such a development starts to put into context Amazon's recent acquisition of 3D mapping startup UpNext and its recent moves to acquire a portfolio of wireless patents. Its Kindle Fire has been the most successful Android-based tablet to date, although its sales have dipped sharply since it stormed up the sales charts during the holiday season late last year. Amazon is also rumored to be prepping a revised Kindle Fire and may also add a 10-inch tablet to its range.



By Electronista Staff
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Comments

  1. climacs

    Forum Regular

    Joined: Sep 2001

    +6

    LOL whatever

    further fragment the Android market, awesome

  1. Mr. Strat

    Junior Member

    Joined: Jan 2002

    -2

    Who cares?

    People are demanding such a device?

  1. UmarOMC

    Fresh-Faced Recruit

    Joined: Aug 2001

    -1

    SooooOOOoo...

    An Android phone based around the Amazon App store rather than Google Play...? I hope they do a better job of keeping the malware off of their collection. I'm sure, akin to the Kindle Fire I ordered, as soon as its turned on its also going to be linked to your Amazon account... spooky.

  1. Peter Bonte

    Fresh-Faced Recruit

    Joined: Aug 2001

    +2

    Better store

    I hope the store works better than Google Play and is safer for my kids to use, i entered my visa in Google Play but i could not remove the card from the phone and not password protect it. Really frustrating, i had to go to Google Wallet on the PC to remove the card.

    As a result my daughter is only allowed to download free apps.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    0

    Just what the world is waiting for...

    another Android smartphone. As if there aren't enough of them already. I really have to wonder how many Android smartphone vendors are profiting. With Samsung being the major Android smartphone vendor, there just doesn't seem to be much remaining market share to go around. I can't imagine the Amazon smartphone being able to compete with something like the Galaxy S III or even Google's own branded smartphone. Jeff Bezos loves to take risks, that's for sure. So far it's been paying off as shareholders continue to see the share price rise along with its Amazon's ever-growing P/E. Wall Street seems to truly love Amazon, no matter what it does.

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