Kindle Fire gave tough competition to Apple iPad. Now a rumoured Amazon Phone will pose threat to Apple iPhone, Samsung Galaxy S3
In a quite unexpected development, Bloomberg reports that Amazon is working to develop a smartphone. After the massive success of its Kindle Fire eReader tablet, the online vendor is reportedly planning a handset to take on Apple iPhone and Google Android handsets. It is not clear on which platform Amazon will roll out its rumored phone. The company has utilized a modified version of Android 2.3 Gingerbread in Kindle Fire, which turned out to be a massive hit in the market.
As per Bloomberg, sources have informed it that the online retailer has recently sought out many wireless technology patents to safeguard itself from legal actions when its handset comes to the market. To avoid legal wars like the ones we happened to see between the Apple, Samsung, HTC and Motorola, Amazon has started to buy patents from various patent holders. The move has given enough evidence to analysts to imagine that Amazon is working with an own smartphone in future.
“Amazon is seeking to complement the smartphone strategy by acquiring patents that cover wireless technology and would help it defend against allegations of infringement,” says Bloomberg. An anonymous source has Bloomberg that Foxconn, a Chinese hardware maker, has struck a deal with Amazon for making a handset. The Seattle-based online vendor has considered buying multiple wireless patents from InterDigital Inc and other firms. The company has just started the process to protect its upcoming handset from legal issues.
Benefits of an Amazon smartphone
Amazon CEO Jeff Bezos opened up a new path in the tablet market with its low-priced Kindle Fire tablet. Late last year, the company rolled out its first and much-hyped eReader-friendly tablet PC for a price of just $199. It was when the iPad, which is priced around $450, has been ruling the tablet market. Thanks to the low price factor and eReader compatibility, Kindle Fire became a huge hit. Naturally, Amazon CEO might think of launching a smartphone of its own in competition to iPhone and Android handsets.
A smartphone of low price from Amazon would be another revolution in eReading industry. Needless to mention, an Amazon smartphone will have major focus on eReading of papers, books and magazines and enjoying other digital content. The company will have the primary goal of generating revenues from customers, who subscribe to its digital content of movies, eBooks, magazines and others, says Bloomberg. “A smartphone would give Amazon a wider range of low-priced hardware devices that bolster its strategy of making money from digital books, songs and movies,” says it.
Threat for iPhone and Androids
The Kindle Fire came out to be a severe blow to iPad and other tablets in market. Large number of people run behind the Fire as it cost less and it is a rich slate for eReading. Manufacturers such as Samsung and Apple would face some direct threat if Amazon launched a low-priced smartphone. With a goal to make revenues from its digital content subscriptions, Amazon can sell its hardware for low prices. Even if the hardware cost is not met, Amazon can manage the loss selling its digital content to the users.
Indeed, the case is different for iPhone and other leading Android handsets. Apart from paying high prices, users of those devices will have to subscribe to digital content spending extra cash. That is, a phone from Amazon would be a big hit for the kind of customers, who have to read more and enjoy more digital content. Anyway, Amazon spokesman Drew Herdener has declined to make a comment on the reports. Meanwhile, Bloomberg is not the first source to talk about the possibility of a smartphone from Amazon. Earlier, Mark Mahaney, an analyst at Citigroup has said that Amazon is planning a handset.