According to Bloomberg, sources with familiar with Amazon’s plans revealed that the online retailer is covering its bases by seeking out wireless technology patents to protect itself from legal action once it enters the smartphone market, which is something it plans on doing. It is being said that Amazon is working on a handset that is to directly compete with Apple’s iPhone and Google’s Android smartphones.
As of right now, Amazon reportedly expressed interest in a set of wireless patents from InterDigital but lost out to Intel, which purchased the intellectual property for $375 million. According to Bloomberg’s sources, Amazon is currently “taking pitches and setting up briefings with other sellers.” One tipster mentioned that contract manufacturer Foxconn has also been tapped to produce the handset with Amazon.
The possibility of an Amazon-developer smartphone and reports of one being in the works aren’t entirely new here. Citigroup Mark Mahaney reported of a joint Amazon-Foxconn smartphone project in the works last year. The analyst estimated the device would cost anywhere between $150 to $170 to build and could possibly be sold at cost. This isn’t entirely a new venture for someone like Amazon as they started getting into the hardware business with the Kindle e-ink readers. The company then extended into the low-end tablet market with its Kindle Fire late last year. The sales of the Kindle Fire started out hot but have cooled off quite a bit since then.
A next-generation Kindle Fire is set to arrive later this year and the possibility of some news of an Amazon smartphone may very well compliment the headlines as well. We’ll have to wait and see what Amazon has in store for everyone but the news should be great for consumers as this only means more competition and better quality products as a result of everything.
Source: Bloomberg
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