Amazon Wireless is reported to be in the running to produce an Android based smartphone to challenge the iPhone and give another gateway to sell their products like the Kindle Fire. With
unnamed sources, Amazon Wireless is contracting with Foxconn Int’l to produce the phones while acquiring wireless patents for it to avoid patent infringements such as what Apple is doing to Samsung and HTC with their super legal team. Hit the break for more information about this phone.
“Our research suggests Amazon is currently working on a smartphone that we believe is planned to launch this year and could prove to be more sophisticated than many smartphones on the market,” - Topeka Capital Markets analyst Brian White
One of the issues that face many companies starting up is making the phone itself will cost millions in development. This means the phone itself, while affordable, will probably net very little (if any) profit. Fortunately for Amazon Wireless the phone will allow the company to recoup the cost with the digital downloads it already sells. Since Amazon runs a modified version of Android it will most likely won’t have access to ALL Android services.
With the Kindle Fire it went through different outlets to sell the device; and that is without voice. When you add voice to the device then you have to couple with a carrier.
As AllThingsD notes, Clearwire might be a potential wholesale partner, but if Amazon wants to offer customers voice service it will likely have to partner with at least one other additional carrier for the time being.