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[Reuters] Amazon may launch a smartphone in Q4 2012: report

post #1 of 24
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Amazon.com Inc may launch its own smartphone in the fourth quarter of 2012, Citigroup said, citing its supply-chain channel checks in Asia.

In a research note dated November 17, the brokerage said it believes the online retail giant is now jointly developing the phone with the world's top contract cellphone maker Foxconn International Holdings Ltd.

"With the clear success of the Kindle e-Reader over the past 3 years, and Kindle Fire possibly succeeding in the low-priced tablet market, we view this as the next logical step for Amazon," the brokerage said.

It expects Amazon to pay non-recurring engineering fees to Foxconn, but Taiwan's Hon Hai Precision Industry Co Ltd to actually make the device and multiple components.

The brokerage expects the smartphone to adopt a Texas Instruments processor and Qualcomm's baseband chips.

"We expect Amazon's smartphone to be a mid-end device based on the processor it adopts," the brokerage said, and pegged the company's total cost for making such a phone at $150-$170 each.
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post #2 of 24
meh. my friend with a kindle fire was not impressed (with the fire).
 
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post #3 of 24
Quote:
Originally Posted by ez12a View Post

meh. my friend with a kindle fire was not impressed (with the fire).

The only thing impressive about the Fire is the price.
 
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post #4 of 24
Quote:
Originally Posted by ForumViewer View Post

The only thing impressive about the Fire is the price.

Well that is what they were going for. The golden rule with consumer electronics is to never jump on with the first generation, it's practically guaranteed that you will be unsatisfied with something.
 
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post #5 of 24
Quote:
Originally Posted by Polymerabbit View Post

Quote:
Originally Posted by ForumViewer View Post

The only thing impressive about the Fire is the price.

Well that is what they were going for. The golden rule with consumer electronics is to never jump on with the first generation, it's practically guaranteed that you will be unsatisfied with something.

Well yeah, Amazon had to cut features to keep the price low. But I don't think a second generation Fire will be all that improved if Amazon wants their prices that low. Not unless the cost of everything they left out suddenly gets significantly cheaper. Or they'll just use old, last gen parts...and what good will that be? I still think amazon needs a premium line of goods.
 
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post #6 of 24
Quote:
Originally Posted by ForumViewer View Post

Well yeah, Amazon had to cut features to keep the price low. But I don't think a second generation Fire will be all that improved if Amazon wants their prices that low. Not unless the cost of everything they left out suddenly gets significantly cheaper. Or they'll just use old, last gen parts...and what good will that be? I still think amazon needs a premium line of goods.

One thing that I think will determine the price of the Fire 2 (assuming there is one) is going to be based on how much more media they are selling due to the tablet. They are already selling the Fire at a loss, so if they decided to beef up the hardware or make a bigger screen, etc, then they very well could keep it at the $199-249 price point if the content sales are there. Given the wide array of consumers that the Fire appeals to, I imagine there is a good chance that they are going to see a nice boost in profit which will allow them to be extremely competitive on pricing.

A smartphone is a sensible venture for them to go down as well. Amazon has a very crucial part of the market right now. How many Kindle's are being sold to middle aged or the elderly that read daily and buy books regularly? Too many to count I'm sure. That is also the segment that probably aren't too keen on smartphones or are on the fence about getting one. With an Amazon based phone experience, I think that will appeal to a lot of people because it would be more "familiar" than other options.

It's going to be very interesting to see how this all plays out.
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post #7 of 24
I hope they don't. They will end up releasing a cheap Android based phone that has been crippled by their version of the OS. That would not be good for the Android camp.

As it is, these watered down tablets like the Fire and Barnes and Nobles Nook tablet give Android a bad name. Those that don't know any better think that they are the extent of what Android can do.
I just had to explain to my fiance the other day, as she drooled over the Nook Tablet, that it is a watered down version of Android. Might as well spend the extra $50-100 and get a full Android device.
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post #8 of 24
Quote:
Originally Posted by Dragonii View Post

I hope they don't. They will end up releasing a cheap Android based phone that has been crippled by their version of the OS. That would not be good for the Android camp.

As it is, these watered down tablets like the Fire and Barnes and Nobles Nook tablet give Android a bad name. Those that don't know any better think that they are the extent of what Android can do.
I just had to explain to my fiance the other day, as she drooled over the Nook Tablet, that it is a watered down version of Android. Might as well spend the extra $50-100 and get a full Android device.

Funny you call it crippled, when it's going to be the most successful Android device ever. Amazons OS offers users just about everything they need. The only thing crippling the Fire is the cheap hardware.
 
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post #9 of 24
Quote:
Originally Posted by ForumViewer View Post

Quote:
Originally Posted by ez12a View Post

meh. my friend with a kindle fire was not impressed (with the fire).

The only thing impressive about the Fire is the price.

http://www.zdnet.com/blog/diy-it/7-reasons-the-kindle-fire-is-better-than-the-ipad/278

rolleyes.gif

Given the average user, they couldn't tell the difference in performance between the iPad and the Fire.

edit: given the browsers poor performance, and that it is android, downloading opera mobile would fix the performance issue.
Edited by Domino - 11/21/11 at 7:15am
post #10 of 24
Quote:
Originally Posted by Domino View Post

Quote:
Originally Posted by ForumViewer View Post

Quote:
Originally Posted by ez12a View Post

meh. my friend with a kindle fire was not impressed (with the fire).

The only thing impressive about the Fire is the price.

http://www.zdnet.com/blog/diy-it/7-reasons-the-kindle-fire-is-better-than-the-ipad/278

rolleyes.gif

Given the average user, they couldn't tell the difference in performance between the iPad and the Fire.

I just returned my Fire. Rest assured, ANYone could tell the difference in performance between the iPad and Fire. And I do mean anyone. Fire users that have never used another tablet simply wouldnt know any better. That article is also just pointless click fodder.
Edited by ForumViewer - 11/21/11 at 7:13am
 
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