Amazon is working with component suppliers in Asia to test a smartphone, people familiar with the situation said, suggesting that the Internet retail giant, which sells the Kindle Fire tablet computers, is considering broadening its mobile-device offerings. Officials at some of Amazon’s parts suppliers, who declined to be named, said the Seattle-based company is testing a smartphone and mass production of the new device may start late this year or early next year.
This would increase competition in the Smartphone market providing more choices for consumers. It would also see Amazon competiting in another catagory with Apple Inc. Luk highlighted that:
Amazon leads the market for electronic books with its Kindle readers, Amazon entered the tablet market last year with its Kindle Fire, which runs on Google’s Android operating system. The device’s $199 price tag, compared with $499 or higher for Apple’s iPad, indicated that Amazon, instead of seeking profit on the sale of the tablets themselves, is trying to make money by selling digital content on the devices.
Bloomberg had a similar report last week adding more weight to Luk’s report. Bloomberg stated that:
Foxconn International Holdings Ltd. (2038), the Chinese mobile- phone maker, is working with Amazon on the device, said one of the people, who asked not to be identified because the plans are private. Amazon is seeking to complement the smartphone strategy by acquiring patents that cover wireless technology and would help it defend against allegations of infringement.
I guess for us consumers its a case of lets wait and see.
Image credit: Wired.