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Amazon Testing its Smartphone Already

With the content giant Amazon trying to flex its muscles and get into the smartphone market, things are looking a bit interesting. Apparently, the Amazon smartphone would feature a 4-5-inch screen among several other features. Unfortunately, the details of these features are not made aware.

Reports from WSJ seem to suggest that this is insider news from one of their hardware partners and is therefore very true. Apparently, Amazon is already working on the development of the device, while production could start as early as late 2012 or early 2013.

Amazon is known for keeping the price of its hardware down or at least that is what they have done in the past with the Kindle Fire tablet. Their moto would be to provide as many devices for as less as possible to ensure the maximum sales potential from their content business. This is of course what they will be pitching in and that is exactly where they could pose a problem for manufactures such as Apple, HTC, Samsung and Motorola.

But this could have one area of problem for Amazon too. If the Amazon smartphone is released heavily subsidized, it could clash against the discounting that the carriers do to woo their customers for a long term contract. Amazon, however, does have some tie-ups with carriers who provide 3G data connectivity for their Kindle range of tablets. They could use these tie-ups to influence a special contract for the Amazon smartphone users.

On the other hand Amazon could also end up selling their smartphone lock free and without a SIM, in which case they would be following the footsteps of the Google Nexus One.

At this point, however, we have to wait until the next year or at least the end of 2012 to see the plans prepared by Amazon. One thing is sure, the smartphone market will become open again.

Via: WSJ

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