The phone should end up on the cheap side, with a unit price of $100 to $200. Of course, Apple’s iPhone costs almost $200 to build, but Amazon is very unlikely to go for the same drug cartel margins as Apple.
Sources told the Taiwan Economic Times that Foxconn could ship as many as five million units next year. This sounds rather optimistic given the fact that the Amazon phone should launch between Q2 and Q3 next year.
Amazon’s Kindle Fire tablets seem to be doing surprisingly well. Whether the company can replicate the success in the smartphone market remains to be seen.