Amazon is taking a stab at the mobility market by coming out with its own smartphone sometime during the second quarter and third quarter next year, with the help from one of Apple’s trusted allies, Foxconn.
Foxconn assembles Apple’s iPhones and also plans to help Amazon manufacture it’s smartphones as well. The company will be shipping up to five million units within the next year, which doesn’t seem like a large number if compared to the five million units of the iPhone 5s that were sold in the US on the first three days of its release.
Foxconn will reportedly work with touch panel makers J Touch and Young Fast Optoelectronics. The J Touch Corporation recently revealed a 5-inch “WhiteMagic” display, which preserves the battery life by reducing backlight power consumption and also gives brighter images. The smartphone will most likely run on Android.
When Amazon came out with GameCircle, there were certain features that hinted to the manufacturing of a smartphone or more Kindle Fire devices. The platform shares similar traits to Apple’s Game Center.
Although moving into the cell phone business was a predicted next move from Amazon, there are still concerns about how the cost from the hardware will affect the company. According to Colin Sebastian, a senior analyst for R.W. Baird, smartphones require carrier distribution and developing apps, such as search and maps, which could possibly be a rather large investment for the company.
The phone is said to range between $100-$200, which will once again take a stab at Apple’s higher prices in mobility. Amazon was the first company to have a tablet out on the market at a low cost. The Kindle Fire was priced at $199, whereas the iPad was priced at $499. With low prices and a reputation already established on the market, Amazon’s smartphone could be a success.