Earlier this year, Amazon
launched the Kindle tablet offering even more features compared to the e-reader series a few years ago. Next came the Kindle Fire HD, a successor to the Kindle Fire tablet line, and now it appears Amazon may be targeting the smartphone market.
Taiwan Economic News
, affiliate of Hon Hai Group, may have manufactured a new smartphone model for Amazon. Rumor has it that Foxcoon is expected to ship as many as five million devices in the third quarter of 2013 at a $100-$200 price per unit (USD).
Foxconn has been reported to be working actively with a few Taiwanese parts manufacturer including J Touch Corporation and Young Fast Optoelectronics Co. to bring an innovative yet inexpensive device to the market especially witnessing the rapid decline in popularity of Nokia.
If Amazon is in face launching a smartphone line, chances are the price will be accurate. Historic pricing techniques by Amazon shows that they focus their revenues on content purchases rather than sales of the device themselves.
The Kindle Fire was priced at a mere $199 compared to the $499 Apple iPad. It appears Google is following suite with a pricing technique that forces Apple to lower its prices. After the release of the $699 Apple iPhone 5, Google priced the Nexus 4 at not even half the price at $299.
However, the hefty price tag does come with benefits. The Apple AppStore is by far the largest application marketplace so far. All applications are tested prior to release as a quality control procedure. This is not present on the Android marketplace.
As for Amazon, the operating system is definitely going to be weaker than the iOS, but they can maintain the competitiveness with a reduced price. However, Amazon will have to do more than just simply offer the interface specifically designed for purchasing and reading ebooks. The application selection will definitely have to widen along with other aspects as well.
If Amazon does release a $200 smartphone, it will devastate several of the biggest phone manufacturers around the world. This will either force Apple to lower its price or step up to the challenge. On the other hand, it will be a direct competition to Research In Motion's new line of Blackberrys. As for Google, they haven't found much success in the smartphone market and isn't worth considering as a serious player.