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.

By Benzinga Jul 6, 2012 3:14PM
Image: Amazon.com logo © EMMANUEL DUNAND/AFP/Getty ImagesBy Louis Bedigian, Benzinga Staff Writer

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."



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9Comments
Jul 7, 2012 1:30PM
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Why can't companies just stick to what they intended to do with their business. Now we're going to see Wal-Mart have their own phones too? Oh wait...They already do

Last thing I want is a phone that comes pre-loaded with spam apps to try and get me to buy more from them then I already do. 

People will now open their GPS app while driving to Florida, and get pop-ups telling them Amazon has great deals on beachwear.   <--- The only logical reason why Amazon would want to have their own phone in the market.
Jul 7, 2012 4:18PM
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And who made Sam Biddle an oracle?  Stephen Hawkings said that most "discoveries" come to light more through accident than science.  Logic has it that usually a hit comes with others and they are worth a try.  Who knows, today's new kid on the block could be the messiah of  tomorrow.  Why not believe that they could have another homerun and come out with a new smartphone that will make the other smartphones look, sound like Rick Perrys of Texas?  Yeah the one that couldn't remember which three government agencies to close and this after, I'm sure, days, weeks of preparation.
Jul 7, 2012 10:24PM
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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.

Bonnie

Jul 8, 2012 2:37AM
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ANOTHER Smartphone with a tiny screen that won't let you read the print without a good pair of magnifying glasses? ZZZZZZzzzzzzzzz.....bleah.....
Jul 8, 2012 9:48AM
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Whoopee - another Android phone!  I can't wait.
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