Amazon launched its first Android tablet this week, the Amazon Kindle Fire, and now there are rumors that Amazon may be developing their own smartphone, which would probably run Google’s Android OS.
The rumor comes from Citigroup, who have said that we may see an Amazon smartphone in the fourth quarter of 2012, based on analysis of supply chains, and Amazon is reported to be working with FIH on the device.
If Amazon is working on a smartphone, will the device be designed to take on the iPhone? We suspect that as Amazon has released a tablet which retails for $200, there is more chance of us seeing a lower-end Android device from Amazon, rather than a high-end device to take on the iPhone.
Amazon’s Strategy in the Mobile Market
Amazon’s strategy in the mobile market seems to be focused on providing affordable devices that offer great value for money. The Kindle Fire tablet, for instance, was launched at a price point significantly lower than that of its competitors, making it accessible to a broader audience. This approach could very well be replicated in their smartphone venture. By offering a budget-friendly smartphone, Amazon could attract a large number of users who are looking for a cost-effective alternative to more expensive devices like the iPhone or Samsung Galaxy series.
Moreover, Amazon’s ecosystem of services, including Amazon Prime, Kindle eBooks, and Amazon Music, could be seamlessly integrated into their smartphone, providing users with a comprehensive and cohesive experience. This integration could make the Amazon smartphone an attractive option for existing Amazon customers who are already invested in the company’s services.
Potential Features and Market Impact
While details about the potential features of the Amazon smartphone are still speculative, we can make some educated guesses based on the company’s previous products and market trends. The device is likely to run a customized version of Android, similar to the Fire OS used in Kindle Fire tablets. This customized OS could offer a unique user interface and exclusive features tailored to Amazon’s ecosystem.
In terms of hardware, the smartphone might not boast the high-end specifications seen in flagship devices but could still offer a decent performance for everyday tasks. Features such as a good quality camera, a reliable battery life, and a robust build could make it a competitive option in the budget smartphone segment.
The market impact of an Amazon smartphone could be significant. By entering the smartphone market, Amazon would be competing with established players like Apple, Samsung, and Google. However, Amazon’s strong brand recognition and extensive customer base could give it an edge. Additionally, the company’s ability to offer competitive pricing and integrate its services could attract a substantial number of users.
Amazon obviously has plans to release more Kindle Fire tablets next year, and the company releasing an Amazon smartphone would be the next logical step. This move could further solidify Amazon’s presence in the consumer electronics market and expand its ecosystem of devices and services.
Source All Things D
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