Foxconn International Holdings Ltd. is reportedly making a new smartphone for Amazon, according to an article from Taiwan Economic News.
Citing industry sources, the newspaper indicates that the phone will be made “on an exclusive basis.”
Reportedly, the Amazon smartphone will be released sometime between next year’s second quarter and third quarter. This would place it around April to September. Pertinent events that will be occurring at said time frame are Google I/O, which is scheduled for May, and a possible Apple event in June.
The Amazon smartphone will allegedly have a price tag of around US$100 to $200, as revealed by some manufacturers of the smartphone’s parts. Furthermore, Foxconn will be sending five million units of the smartphone to Amazon in 2013. Slashgear notes that five million units does not appear to be a very large number if one considers that Apple was able to sell five million units of the iPhone 5 in three days in the United States.
Taiwan Economic News points out that Foxconn wanted the Amazon deal because it needs a new company that will be a “driver for its handset shipment.” It would be recalled that Foxconn’s old partner, Nokia, has not been as successful as other smartphone companies in recent times.
Foxconn is expected to be working with parts suppliers such as J Touch Corp. and Young Fast Optoelectronics Co., Ltd., both makers of touch panels, in the Amazon project.
Since it entered the hardware manufacturing industry in 2007, Amazon has made itself into a key competitor among other hardware companies. Its strength mostly lies in the low prices of its mobile devices, including the Kindle Fire tablet, which was able to best other more established electronics companies.
Along with its new smartphone, Amazon is also expected to release a new version of the Kindle Fire tablet, which might be available on the third quarter of next year. Quanta Computer Inc. and Compal Electronics Inc. are reportedly the two companies that will be making the device.