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Friday, 18 November 2011 11:50

Amazon about to release a smartphone

Written by Nick Farell

Amazon Logo

Dark satanic rumours

Online Book seller, Amazon is about to release a new smartphone according to world on the street.

Analysts at Citibank report that, based on their "supply chain channel" research, they believe Amazon is following up on its low-priced Kindles with a smartphone. The idea is that the Amazon will flog the phone at a loss, and presumably make up the difference by selling e-books, music and other digital media to mobile customers.

The analysts, Mark Mahaney and Kevin Chang, have broken down Amazon's costs, and believe the company has an edge over traditional mobile phone manufacturers. It would cost Amazon about $150-170 to make the phone.

Amazon may already be in talks with Foxconn International Holdings—the Chinese company that builds Apple's iPhone to help develop the device. It will be made by the same people who make Amazon's Kindle tablet and e-book readers, however.

"With the clear success of the Kindle e-Reader over the past 3 years, and Kindle Fire possibly succeeding in the low-priced Tablet market, we view this as the next logical step for Amazon," the Citi report says.


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