Amazon Smartphone in the Works

Smartphone companies may soon have some competition as rumors of Amazon.com‘s entrance into the cellphone market begin to swirl. While not officially announced yet a jump into mobile phones doesn’t seem so farfetched for Amazon. Even better than the thought that we may soon be able to get our hands on an Amazon phone are the possibilities of what this could mean for the cellphone market in general.

MSNBC speculates that a phone from Amazon may, like it’s tablet/e-reader counterpart be supported by ads giving consumers the possibility of grabbing a solid, robust phone for pocket change:

People are already ponying up to buy $200 or $300 phones in order to get contract-free cell plans service from companies such as Virgin Mobile and Boost Mobile, even though most of those phones are small or underpowered. Meanwhile, there is genuine excitement now that both Cricket and Virgin Mobile are offering the current (i.e. soon-to-be outdated) iPhone 4S, even with prices as high as $650. It soon pays for itself with lower monthly service charges. And most everyone is glad to avoid a two-year contract.

If Amazon comes out with an Android smartphone, it could offer a primo device, say something similar to the $600 Samsung Galaxy S III, for a lot less — without a contract. Completely free might be too much for Amazon, said Aapo Markkanen, an analyst at ABI Research. But he told TechNewsDaily that the price could be marked down as low as 40 percent of what a competing phone costs.

Bloomberg News seems fairly confident on the matter stating outright that Amazon is indeed working with Foxconn International (manufacturers of iPad, iPhone, Kindle, PS3 and Xbox 360) to build an Amazon phone.

Amazon.com is developing a smartphone that would vie with Apple Inc.’s iPhone and [other] handheld devices that run Google Inc.’s Android operating system, two people with knowledge of the matter said.

Foxconn International, 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, other people with knowledge of the matter said.

With the a great cellphone and freedom from long-term contracts with phone companies and a solid phone Amazon may be quite likely to carve out a solid place in the market. And tf the reliability and innovation of Amazon’s previous products and services are any indication of what we can expect in their rumored cell-phone then it (and it’s price-point) will undoubtedly be worth the wait.

– Rude Magazine – @JordanRUDEmag

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