November 18, 2011
Amazon Rumored To Be Working On Smartphone
The week that Amazon released its Kindle Fire tablet and now new rumors are circulating that the company is working on a phone.
According to a report by technology blog site AllThingsD, Amazon could have its own smartphone by the fourth quarter in 2012.
The report said Citigroup's research department is using the company's supply chain channel to make this assumption.
Analyst Mark Mahaney said the phone will use Texas Instrument's OMAP 4 processor and is likely to also use QCOM's dual mode 6-series standalone baseband.
He believes the phone may cost between $150 to $170 to build and could sell it for close to that price.
“For a normal brand like HTC, they need to price the product at US$243 to make 30% gross margin," Mahaney told AllThingsD. "If Amazon is actually willing to lose some money on the device, the price gap could be even bigger.”
Amazon would be competing against big players like Apple and Samsung who lead the smartphone market in the U.S.
Apple recently released its iPhone 4S, and Samsung its Galaxy S II, which runs on Google's Android.
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