Amazon reportedly planning smartphone to take on Apple's iPhone
A new report claims Amazon is working on a handset that will compete directly with Apple's iPhone and Google Android smartphones.
Sources familiar with Amazon's plans told Bloomberg that the online retailer is also covering its bases by seeking out wireless technology patents to protect itself from legal action once it enters the smartphone market. A number of the world's largest handset vendors are engaged in lawsuits against each other, with Apple at the center of several heated disputes.
Amazon reportedly expressed interest in a set of wireless patents from InterDigital, but lost out to Intel, which purchased the intellectual property for $375 million. According to Bloomberg's sources, Amazon is "taking pitches and setting up briefings with other sellers."
One tipster said contract manufacturer Foxconn has been tapped to produce the handset with Amazon.
Reports of an Amazon-developed smartphone are not entirely new. Citigroup analyst Mark Mahaney reported last November that a joint Amazon-Foxconn smartphone project was underway. The analyst estimated the device would cost between $150 and $170 to build and could be sold at cost.
Amazon first got into the hardware business with its Kindle e-ink readers. The company then lit up the low-end tablet market with its Kindle Fire late last year. Sales of the Fire got off to a lively start, but they have since cooled off considerably. A next-generation Kindle Fire is expected to arrive later this year, though there is some disagreement as to whether Amazon will change the size of the device.
Sources familiar with Amazon's plans told Bloomberg that the online retailer is also covering its bases by seeking out wireless technology patents to protect itself from legal action once it enters the smartphone market. A number of the world's largest handset vendors are engaged in lawsuits against each other, with Apple at the center of several heated disputes.
Amazon reportedly expressed interest in a set of wireless patents from InterDigital, but lost out to Intel, which purchased the intellectual property for $375 million. According to Bloomberg's sources, Amazon is "taking pitches and setting up briefings with other sellers."
One tipster said contract manufacturer Foxconn has been tapped to produce the handset with Amazon.
Reports of an Amazon-developed smartphone are not entirely new. Citigroup analyst Mark Mahaney reported last November that a joint Amazon-Foxconn smartphone project was underway. The analyst estimated the device would cost between $150 and $170 to build and could be sold at cost.
Amazon first got into the hardware business with its Kindle e-ink readers. The company then lit up the low-end tablet market with its Kindle Fire late last year. Sales of the Fire got off to a lively start, but they have since cooled off considerably. A next-generation Kindle Fire is expected to arrive later this year, though there is some disagreement as to whether Amazon will change the size of the device.
Comments
Good luck.
Thats good for us consumers.
I dont like and wont buy Amazon tablet/phone. But they will force Apple to reduce iPhone prices, which I think is good.
Not in the slightest.
This is interesting. What's their angle? Are they aiming for the cheapest smartphone on the market?
Well I think, the rumoured low cost iPad mini is a response to Fire and low cost tablets.
Quote:
Originally Posted by ewiz77
Thats good for us consumers.
I dont like and wont buy Amazon tablet/phone. But they will force Apple to reduce iPhone prices, which I think is good.
You're talking about a company that's made a name for itself selling a 15" laptop for $2800. Nobody forces Apple to do ANYTHING.
Quote:
Originally Posted by ankleskater
This is interesting. What's their angle? Are they aiming for the cheapest smartphone on the market?
Amazon will only aim at the cheap phone segment
I get the Kindle Fire, but what's the value of an Amazon-branded phone sold at cost? Isn't this just the race to the bottom?
Not just a laptop. The world's best 15" laptop.
Or Twitter. Something about all phones calls being les than 140 seconds seems liberating.
Another Android based phone basically?
[VIDEO]
Quote:
Originally Posted by chabig
Not just a laptop. The world's best 15" laptop.
I stand corrected.
Quote:
Originally Posted by ewiz77
But they will force Apple to reduce iPhone prices, which I think is good.
Not gonna happen.
Price of iPad 1: $499 Price of iPad 2: $499 Price of iPad 3: $499 (I should add that those prices were when the respective devices were first released of course, in case any potential smartass tries to make some useless point.)
Almost immediately, all over the world, after the iPad was released, rivals were having complete meltdowns, and they quickly flooded the market with the cheapest and shittiest tablets that you could possibly imagine. The average consumer now had plenty of choices, more than anyone could ever wish for, and all of those other tablets did nothing at all, it was one miserable failure after another.
Amazon released their Fire tablet, running a skinned version of the poor people's operating system known as Android, and that hasn't done jack shit.
Apple doesn't give a shit about what these other companies do. They're like little ants to Apple, and Apple can step on them and crush them whenever they please.
Amazon releasing some cheap skinned Android phone will just be yet another phone amongst the hundreds and hundreds of shitty Android phones that already exist out there.
Almost immediately, all over the world, after the iPad was released, rivals were having complete meltdowns, and they quickly flooded the market with the cheapest and shittiest tablets that you could possibly imagine.
i dunno. i'd like to think that i've imagined shittier.Quote:
Originally Posted by Apple ][
Not gonna happen.
Price of iPad 1: $499 Price of iPad 2: $499 Price of iPad 3: $499 (I should add that those prices were when the respective devices were first released of course, in case any potential smartass tries to make some useless point.)
Almost immediately, all over the world, after the iPad was released, rivals were having complete meltdowns, and they quickly flooded the market with the cheapest and shittiest tablets that you could possibly imagine. The average consumer now had plenty of choices, more than anyone could ever wish for, and all of those other tablets did nothing at all, it was one miserable failure after another.
Amazon released their Fire tablet, running a skinned version of the poor people's operating system known as Android, and that hasn't done jack shit.
Apple doesn't give a shit about what these other companies do. They're like little ants to Apple, and Apple can step on them and crush them whenever they please.
Amazon releasing some cheap skinned Android phone will just be yet another phone amongst the hundreds and hundreds of shitty Android phones that already exist out there.
Well said Apple ][. I couldn't have said it better.
Also, since Amazon is using Foxconn, will the tech media pundits including the New York Time hold Amazon fully responsible for any Foxconn wrong doings? Me thinks not since only Apple appears to be the only company that is held responsible for Chinese factory working conditions.