Bloomberg claims that it has information from reliable sources that Amazon is planning to launch their own mobile phone in competition with the current leaders in Smartphone industry, the Apple iPhone and various Android devices. The rumor is not something totally new, there was a similar rumor by a Citigroup analyst last november as well.
Amazon has reportedly tried to acquire its own share of wireless patents as well from InterDigital recently to stay safe out of the patent battles but lost out on a bid against Intel. It is rumored that Amazon has partnered with Foxconn as it’s supplier for the new phone it is going to launch.
Amazon had its success in the low priced tablet segment last year with the launch of Kindle fire. Amazon is also rumored to be working on a new, much better version of Kindle fire which is to be launched later this year. Amazon relied on generating revenues from content rather than the hardware itself which enabled it to sell Kindle fire for $200 only. The same thing is rumored to be true with the yet to be launched Amazon Phone as well. Sources claim Amazon might end up selling its phone for a mere $150 to $170 which is exactly what it intends to pay to get it manufactured. This seems to be too amazing to be true!