A smart phone from Amazon is said to compete against the iPhone.
Making money seems to be one of the many things which Amazon is always working on. Another is the desire to be involved in selling technology which they own. The Amazon Kindle Fire is one which has been very successful for them and there is talk of the next version coming out this year. So, it is not surprising that reports of Amazon working on releasing their own smart phone in the near future is being rumored.
Based on a Bloomberg article, Amazon is talking to Foxconn about producing a smart phone which would complete with the likes of the iPhone and Android devices in a growing market. They even indicate that Amazon has been buying some technology patents to potentially protect them from all the ongoing lawsuits which have been going on around the world. One would have to assume they are watching the Northern California case between Apple and Samsung.
One can assume that Amazon would be introducing a lower priced smart phone then competitors as part of the process to enter the market. While the price would be lower, the actual hardware in the phone would not directly match up with other smart phones and be a little behind the times. This is similar to what they did with the Kindle Fire when they entered the market by including lower priced components which were not close to the cutting edge at the time of release. We would expect to see the same with any Amazon smart phone.
Amazon has a number of things going for them if the rumor is correct regarding them releasing a smart phone. They have a great marketing channel already in existence and have demonstrated their abilities with the release of the Kindle Fire. On top of that, they have a distribution channel for everything they sell which has been in existence for many years. These two things combined gives Amazon everything they need to promote and sell their smart phone. They obviously would have to find wireless carriers for the phones to work with. One can assume they will be using the Android OS since they have done the same for their Kindle Fire. From that point on, they would be maintaining the OS to fit exactly what they want it to be.
Earning money is something which drives a company like Amazon to add products which they believe are going to alter the market and give them a larger market share. The Amazon Kindle Fire has clearly demonstrated this. Whether an Amazon phone will do the same is not a sure thing. If the rumors are true, look for Amazon to flood the market and grab market share.