Print 16 comment(s) - last by Moishe.. on Dec 19 at 5:08 PM

Foxconn is allegedly working on the device now

After making a huge (and successful) splash in the tablet space with its Kindle Fire devices, it only makes sense that Amazon would give smartphones a shot -- and rumor has it that Foxconn has already manufactured a new model for the e-tailer.

According to a report by, Amazon's first smartphone will launch between the second and third quarter of 2013 and the e-tailer may ship as many as five million units for the year.

Foxconn has allegedly manufactured a new smartphone model for Amazon already, with touch panel makers J Touch Corp. and Young Fast Optoelectronics Co. rumored to be playing a role in the new smartphone's development.

Back in July of this year, Bloomberg reported that Amazon was looking to release a smartphone of its own as early as November 2012. Clearly that didn't happen, but other rumors have left the mill as well, such as the size of Amazon's first phone (4 to 5 inches).

Amazon dipped into the mobile realm last year when it released its first tablet, the Kindle Fire, in November 2011. The 7-inch, $199 tablet was a hit during the holiday season, moving 4.7 million units in Q4 2011. This was nearly one-third of what Apple's iPad accomplished during that same period (15.4 million units).

In September of this year, Amazon announced the successor to the Kindle Fire: Kindle Fire HD. The HD comes in 7-inch, 8.9-inch or 4G LTE models. The 7-inch model shipped September 14 at $199 while the 8.9-inch model shipped November 20 for $299. For those willing to step up to the 4G LTE Fire HD, it shipped November 20 for $499 -- and don't forget the great data package that offers 250 MB of bandwidth per month, 20 GB of cloud storage space and a $10 Appstore credit all for $49.99 per year. 


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RE: Will We Hear From Apple?
By Tony Swash on 12/18/2012 5:05:22 PM , Rating: 2
So when can Apple file their first infringement suit against Amazon? I think that they should file now to nip this thing in the bud!

From their viewpoint it is just one more competitor that will steal marketshare from them.

I don't think it's Apple who will feel the effects of this, it's Google. All that effort and investment and all they can do is watch as great big chunks of the Android ecosystem dump their services, the Chinese Android OEMs, Barnes and Noble, Amazon Kindle and now Amazon phone, all Google free.

Meanwhile Google struggles (as does everyone) to earn anything more than peanuts with mobile advertising, they earned just $315 million with mobile ads in the US last year, one of the worlds top ad markets, and most of that came from iOS devices not from Android.

Google made around $2.5 billion on ads in the US in the last year and about $315 came from mobile and over half of that came from iOS so that means total Google earnings from mobile ads runs to only about 6% of it's total revenues. And that's in a market where smart phones have already reached 50% of the market. It's looks like the best Google can manage in any market, assuming optimum conditions of 100% smart phone penetration, is around 13% of the revenues it earns from the traditional desktop/browser. In a nut shell that is Google's mobile conundrum. The desktop as the way customers access the internet is in decline in importance as more and more users access the internet and internet services via their mobile devices and via apps, and as that happens so Google faces a revenue squeeze. And it appears that Android is not the answer to that problem.

In the whole sprawling Android system is anybody other than Samsung making any profits, real profits? And now the king of the loss leading under cutters, Amazon, enters the fray. I can only imagine the groans in the boardrooms of the Android OEM's on hearing this news, they need a price cutting war like they need a hole in the head. I bet Google are none to happy either. What fun.

RE: Will We Hear From Apple?
By StevoLincolnite on 12/18/2012 5:33:51 PM , Rating: 3
Tony. If you are going to post crap, at-least try to make sure it is accurate crap.

For starters... The Amazon Kindle hasn't "Dumped" Google/Android.
It's an Open-Source Operating System and Amazon are tweaking it for their own needs.

As for Google and mobile advertising, they earn allot from the iOS platforms. So even if Android fails, Google will still win.

The rest is merely drivel that no one actually cares about.

RE: Will We Hear From Apple?
By Tony Swash on 12/18/2012 5:50:12 PM , Rating: 2
I didn't say Amazon dumped Android, I said that they dumped Google, the two are separate things. The business thesis of Android for Google is that it gives away an OS and it's services get baked in and hence Google can collect the all important user tracking data that it uses for it's core advertising business (the one that makes 95% of it's revenues). The problem for Google is two fold, on the one hand players like Amazon can and have used a version of Android but one without Google's services and data tracking collection, and on the other hand even when Google get's to collect that precious data it turns out to not be that precious because mobile advertising is a low revenue business compared to the traditional internet ad business. Either way Google has a problem.

On the bigger impact of Amazon, it's hardware product offerings in mobile disrupt the Android hardware ecosystem and not the iOS hardware ecosystem. It's the former that can hardly scrape any profits so a major loss leading Android handset product is hardly welcome.

RE: Will We Hear From Apple?
By spread on 12/18/12, Rating: 0
RE: Will We Hear From Apple?
By tayb on 12/18/2012 10:18:22 PM , Rating: 2
Amazon didn't dump Android but they seriously minimized Google. Where do you get content on the Kindle Fire?? Exactly.

He's mostly right but where he's wrong is ignoring all the other revenue draws from Android. It brings people into Gmail, Youtube, Google Maps, Talk, and Drive. These aren't all huge revenue drivers yet but some are and eventually they all could be. The important thing is to get people used to using them. The Play Store (stupid name) also brings in revenue but I have no idea how much.

I think his entire point was that OEMs are looking for more ways to profit from their smart phones and one of the ways they're going about doing this is by replacing Google services with their own services. This relegates Google into a company that serves ads. Not the greatest place to be.

RE: Will We Hear From Apple?
By Tony Swash on 12/19/2012 6:37:26 AM , Rating: 2
He's mostly right but where he's wrong is ignoring all the other revenue draws from Android. It brings people into Gmail, Youtube, Google Maps, Talk, and Drive. These aren't all huge revenue drivers yet but some are and eventually they all could be. The important thing is to get people used to using them. The Play Store (stupid name) also brings in revenue but I have no idea how much.

How will those things drive revenue? All of Google's revenues and profits comes from advertising. It's USP for advertisers is the ability to selectivity target ads to suit the habits and interests of individual users, and where they happen to be be and what they happen to be doing when they see the ads. And so everything Google does is designed to allow it to collect more and richer data about end users and serve them targeted ads. Google has no other source of income other than advertising. All the non-advertising product's it sells are either sold at cost or at a loss and in total are a tiny fraction of it's ad revenues. Thing like Gmail, Youtube, Google Maps, Talk, and Drive have no revenue model other than advertising related ones, some are mostly about collecting data to target ads (like scanning the content of your Gmail emails both incoming and outgoing) and some like Youtube allowing the placing of relevant targeted ads adjacent to videos. But it's all about ads.

On the traditional desktop/laptop and via a browser that model works very well and makes lots of money for Google. But on mobile devices it doesn't work so well. Firstly Google get's shut out of collecting user data on significant tranches of mobile devices (Google get's no data from the Amazon or from he vastly more significant Chinese Android devices for example) and as people access the internet via apps rather than the browser Google also loses user data unless it can leverage inclusion of it's data collection system on it's own apps and get the masses to use them (hence Google Map app for iOS). Secondly it is now clear, with over a billion smart phones now in use, that people just don't access ads on their mobile devices very much. And thus ad income per user on mobile devices is a fraction of the income per user on the old desktop devices.

The critical question is whether the mobile devices are accretive in relation to the PC desktop ecosystem, that is will the future be a big and essentially unchanged PC ecosystem with mobile devices added on top. Or will mobile devices erode the PC ecosystem and take over many of it's internet functions. The former is not great for Google but the latter is positively bad for Google.

My view is that the following is probably true.

The PC ecosystem has stopped growing and is probably shrinking. It won't vanish but it is past it's peak.

Mobile devices still have a huge amount of growth in front of them and that more traditional PC activities and most of internet access will migrate to mobile devices.

And those two trends, a declining PC and a growing mobile sector are bad for Google if it's core revenues are still overwhelmingly coming from the former. And with the evidence of 500 million sales now in, it is clear that Android is not the solution to this problem.

RE: Will We Hear From Apple?
By Moishe on 12/19/2012 5:08:48 PM , Rating: 2

Decent quality at a lower cost will have an effect on everyone, including Apple because they target the higher end. Competition is good.

Google is not scraping by.

"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive

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