We all know that Google is responding to Amazon and the Kindle Fire with their own Nexus tablet later this summer. They are expected to introduce an Android powered tablet, designed to be a consumption device at a price point similar to the Kindle Fire.
Google doesn’t make any money from the Kindle Fire, except for mobile search. While the Kindle Fire runs on Android, it is a tweaked version re-worked by Amazon for just the Kindle Fire. The Kindle Fire also has no access to the Google Play store. While the money Google makes in the Google Play store is nominal, that’s not sitting well with the internet giant.
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Last year Citibank analyst Mark Mahaney released a report suggesting that Foxconn is already busy producing an Amazon phone that should be released in Q4 2012. The phone is expected to run a similar hacked up version of Android, have the same walled garden content delivery system and run between $150 and $170 dollars.
The Amazon phone would be a huge hit. Not only does Amazon have their own digital commerce channel in place, it happens to be the most popular in the world. Amazon users will have many of the same advantages found on the Kindle Fire tablet like access to the Kindle store, movies, music and more.
Add this rumor to the rumor of a 10.1″ Amazon tablet and the e-commerce giant will have all of the hardware channels covered.
It was reported last month that Amazon’s Kindle Fire tablet sold more units than all of the other Android powered tablets combined. If they are that successful with the launch of a smartphone the other OEM’s need to start planning now.