Amazon could develop own-brand smartphone
Friday, May 4, 2012 - 10:23:44
Online retailer Amazon has been in the business of producing its own devices for some time now, with the Kindle eBook reader and the Kindle Fire Android tablet both making their own major impacts on the market.
However, industry insiders now expect that Amazon will create its own smartphone handset in order to take on rivals, including Apple, Samsung and HTC.
Although the Kindle Fire tablet is not officially available in the UK, its popularity in America has allowed it to capture 54 per cent of the Android-based market, which suggests that similar efforts in the mobile sector could allow Amazon to make real headway.
Citigroup analyst, Mark Mahaney, said that he has information on the existence of deals between Amazon and a number of Chinese manufacturers, to help build the potential smartphone.
Amazon will, allegedly, look to sell the smartphone at cost, as it did with the Kindle Fire, which means it could be less than £100 if it does ever launch.
The real selling point will be this low, low price, because no other manufacturer will be willing to match it.
The reason that Amazon is able to sell its products for such a minimal cost to the consumer is that it expects to get back its money and more, through the subsequent purchasing of digital content.
This model has worked well so far for the Kindle and Kindle Fire, which suggests that there is no reason that it should not translate into the mobile market.
Of course mobile phone users have become used to spending almost nothing on applications and services, so Amazon could find that this is a tougher section to crack.
However, there is no doubt that these rumours will have put the frighteners on a number of its competitors.
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