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The e-tailer is currently testing the device

Amazon entered the hardware arena with its Kindle e-readers back in 2007 and then the Kindle Fire in 2011. Now, its stepping into the world of smartphones -- and the spec rumors have only just begun.

Just last week, it was reported that Amazon was expected to release its first smartphone in November 2012. The e-tailer is working with Foxconn International Holdings Ltd. to make the new device, and it is looking to compete with the likes of Apple's iPhone and Google's Android-powered phones.

According to The Wall Street Journal, Amazon's new smartphone will have a 4 to 5-inch screen. This lands in the realm of the iPhone, which will now have a 4-inch screen, and Samsung's Galaxy S III, which is a bit on the larger side at 4.8 inches.

Amazon plans to release the new smartphone either later this year or early next year. The e-tailer is currently testing the device.

In addition to a smartphone, Amazon is also looking to release the successor to its original Kindle Fire tablet this year.
Some specs have already leaked, such as the 1280x800 resolution, an aspect ratio of 1.60 rather than 1.71, and a thinner, lighter frame. According to AllThingsD, the new tablet should be released in late Q3 2012.

Source: The Wall Street Journal

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Value Proposition for Amazon?
By WalksTheWalk on 7/11/2012 11:25:32 AM , Rating: 2
I understand Amazon wants to keep users within its ecosystem and not lose them to Google Play, iTunes or some other media outlet. What I don't fully understand is how Amazon can fully monetize an Amazon phone to offset their costs. Maybe this is a loss leader play to keep users within their ecosystem, but it seems like building a smartphone is very expensive if they go head to head against more traditional Android phones, the iPhone and Windows phones.

Then again, maybe Amazon will make a basic smartphone, subsidize the heck out of the phone and plan hoping they can recoup their costs in Amazon purchases.

RE: Value Proposition for Amazon?
By GotThumbs on 7/11/2012 11:46:23 AM , Rating: 2
Since Apples greatest income generator IS its portal and 30% toll charge. Amazon is just implementing the same strategy. Consumers have shown a willingness to be bound to a proprietary ecosystem such as Apples, so why not expect Amazon or some other company to follow suit? Apple has shown that consumers will pay again and again for the same product with minor upgrades. They would be foolish NOT to take advantage of this opportunity.

I don't follow this trend, but since a majority of this county has shown it does (Apple, FB, etc.) ....its to be expected until (If ever) consumers wake-up to the controlled ecosystem model.

RE: Value Proposition for Amazon?
By augiem on 7/11/2012 2:05:08 PM , Rating: 3
Apple makes FAR more money off their hardware sales than they do their media store. Look at the annual reports. Hardware is king. iTunes and App store are a tiny fraction of their revenue.

RE: Value Proposition for Amazon?
By zephyrprime on 7/11/2012 12:36:28 PM , Rating: 2
I think you are over estimating the "high cost" of producing a smart phone. All the parts are off the shelf and manufactured by other companies except the motherboard. Batteries, screen, ram, processor, touch digitizer, radio, mic, speakers, all pretty cheap commodity parts. The only thing that is custom is the MB which you can contract for. Apple broke new ground with the iphone but since then, the designs have not fundamentally changed. One of the problems with Apple's outsourcing of everything is that all the production expertise is available in the Asian industrial complex for the highest bidder now, not just apple.

RE: Value Proposition for Amazon?
By augiem on 7/11/2012 2:07:16 PM , Rating: 2
I don't understand how Acer and the like can be releasing $200-$250 7" tablets with quad core processors and tons of RAM and retailing them for that price when an equivalently spec'd smart phone costs $600+. Where's the logic in that? You're not going to tell me an antenna and a 4G chip costs $400...

RE: Value Proposition for Amazon?
By augiem on 7/11/2012 2:09:51 PM , Rating: 3
Or how about one of those rotten 1GHz $80 Android tabs. Slap a phone in it and it should be a < $100 rotten Android phone, but no, it'll cost $400.

"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs

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