Chatter that Amazon is developing its own-branded smartphone has grown louder this week, amid fresh claims of its existence by sources privy to developments behind the scenes.
According to a Bloomberg report on Thursday, ‘two people with knowledge of the matter’ have spilled the beans on the e-commerce giant’s ‘private plans’, with one of the tipsters claiming it has enlisted iPhone manufacturer Foxconn on production detail.
Reports have also surfaced that the company has hired an ‘intellectual property acquisition expert’, whose remit involves procuring patents for wireless technology that could be used to defend against allegations of infringements, which have sadly become commonplace of late in the mobile industry.
The analysts have said so
Mark Mahaney, an analyst with Citigroup forecast back in November that an Amazon phone was in the pipeline. Aapo Markkanen of ABI research said in May that an own-branded kit with a great ‘content ecosystem’ would be a logical next step for the retailer.
“If Amazon builds up a sizable customer base for its devices, and many of those customers find its content offerings appealing enough, then that would mean a tougher market environment for Apple, as well,” said Markannen.
Going by its pricing strategy with the Kindle Fire, we’re thinking the Kindle Phone - or whatever it winds up being called - will also be sold at a highly competitive price point, possibly even at a loss. It is thought the retailer will make a return on its investment with sales of digital content via its various online services.
The handset is widely tipped to land sometime in Q4. Keep ‘em peeled as we find out more in the weeks to come.