Amazon reportedly developing a smartphone
The retailer plans to expand its product lineup by releasing a Kindle-themed device built on the Android operating system.
Amazon (AMZN) plans to bolster its product lineup by releasing a Kindle-themed smartphone.
According to Bloomberg, the phone would follow the lead of the Kindle Fire and use the Android mobile operating system from Google (GOOG). Foxconn, the Chinese company best known for manufacturing Apple's products, is said to be working with Amazon to produce the new smartphone.
This is not the first time that Amazon and Foxconn were expected to team up. Last year, Citi analysts Kevin Chang and Mark Mahaney conducted supply chain checks and revealed that the two companies may be developing a new cellular device together. According to Chang and Mahaney, Foxconn is helping Amazon develop the device but has no plans to handle the manufacturing process. Instead, Amazon will outsource that job to another company, TMS.
Having already produced several successful e-readers and one popular tablet, Amazon is quickly becoming a powerful force in electronics production. By leveraging its strong retail brand, the company could become a formidable player in the smartphone market.
Some critics disagree. In a lengthy critique of the Amazon smartphone concept, Gizmodo begged the online retailer to abandon this product. "Please, Amazon -- stick with what you've done well," Gizmodo's Sam Biddle wrote. "Nobody thought you could pull off a real tablet, but you did with aplomb. But don't get cocky. You'll screw it all up. People might buy the Fire because it says Kindle on it, but they'll enjoy it because of the design. I doubt we'll be able to say the same about a phone."
More from Benzinga
- Smartphone Shipments Could Top 1.5 Billion in 2012
- Xyratex Flying Higher on Q2 Earnings
- SEC Approves NYSE's Plan for Retail 'Dark Pool'
Of Amazon can make a smartphone that allows you to read it in sunlight like you can the kindle I would definitely buy one. The worst thing with all android phones is that you can't see your screen in bright sunlight.
Copyright © 2014 Microsoft. All rights reserved.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.