Few months ago rumours were circulating around citing smartphone launch by Amazon but the event that was scheduled after the batch of rumours was only for launch of new range of Amazon’s tablets including the Kindle Fire HD. There are fresh rumours again from DigiTimes stating that Amazon is gearing up to launch its own smartphone that will run a stripped and rebuilt version of Android like on Kindle Fire. The handsets were scheduled for a Q1 launch in 2013 but the sudden shift in handset preference from 4.3″ to 4.7″ pushed amazon to change its handset specs accordingly that is causing the delay, DigiTimes state that Amazon might delay the handset launch beyond Q2 of 2013.
Amazon is the initiator of low priced tablets with its $199 Kindle Fire at launch, later many companies struggled to match the price point initially but could finally beat Amazon with better hardware offerings and much better pricing. But Amazon’s wide ecosystem is still attracting huge number of buyers thus helping it to retain the number 1 position for Android tablet sales in the US. Rumours suggest that Amazon might be eyeing for a $199 off contract and free on contract phone that would once again send shocks across the industry.
Amazon’s revenue model lies in earning from content rather than from hardware and it does not seems to be working all too great as of now. With a wide range of content and domination in categories like books, movies and music Amazon hopes to extend its success with tablets to smartphones as well this year. It would be interesting to see how Apple reacts to this move.
Apple initially snugged off the concept of a 7″ tablet but looking at how the 7″ tablets are moving out like hot cakes Apple launched its own version of 7″ tablet called iPad mini which eventually started cannibalising sale of the 10″ iPad itself soon after launch.