Saturday, July 07, 2012

Amazon Is Planning To Sell Its Own Smartphone


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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