According to Bloomberg, Amazon may introduce its own
smartphone. It said the company is working with Foxconn to develop the
hardware, which will likely run the Android operating system.
Although Amazon is relatively new to the hardware game, it
is quite successful in tablet market thanks to their early entry and a low
price strategy which made possible revenue from books, movies and music.
Kindle, kindle touch and kindle file tablet are all quite popular. However,
success of kindle could not justify why they launch smartphone. Kindle is more
related to e-reader and expands other functions based on their customer base. How
possible would kindle user get an amazon smartphone while most of them have
iPhone or Samsung Galaxy. The smartphone
market is already filled with well-established competitors. Windows also tries
to catch up the market share by launching windows phone, hoping that their PC
users could get more interested. There are so many challenges there to sell
smartphone.
Although Amazon could follow the same strategy that it sells
kindle. It buys wireless service wholesale from the big carriers and bundle it
with the devices. But smartphone is different market. The fallen giant of Nokia
and RIM makes the idea of launching smartphone debatable for Amazon.
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