Are you the proud owner of a new Amazon Kindle Fire? How would you like a new Amazon smartphone to go with that? Having launched its debut tablet just a few days ago, the online retail giant is already planning to extend its reach of electronic devices with its own smartphone.
At least that’s what one analyst believes. Mark Mahaney, who represents Citigroup’s research department, issued a note today in which he reveals “supply chain checks” in Asia have indicated that Amazon has a new smartphone in the works which will launch during the fourth quarter of 2012:
“Based on our supply chain channel checks in Asia led by Kevin Chang, Citi’s Taipei-based hardware research analyst, we believe an Amazon Smartphone will be launched in 4Q12. Based on our supply chain check, we believe FIH [Foxconn] is now jointly developing the phone with Amazon.”
Mahaney believes that Amazon will work with Foxconn to develop the device, paying non-recurring engineering fees, but will have the smartphone manufactured by Hon Hai’s TMS business group — the same company that makes Amazon’s Kindle e-readers, and its Kindle Fire tablet.
“We believe the smartphone will adopt Texas Instrument’s OMAP 4 processor and is very likely to adopt QCOM’s dual mode 6-series standalone baseband given QCOM has been a long-time baseband supplier for Amazon’s E-reader.”
The Texas Instruments OMAP 4 processor mentioned by Mahaney is the same chip that features in the new Kindle Fire.
Amazon is expected to use the same approach with its smartphone that it has taken with its first tablet, which is to offer the device at a pocket-pleasing price that’s little over its manufacturing costs. Mahaney believes it’s likely to cost around $150 – $170 to develop, which could mean that Amazon is set to shake up the smartphone market just like it has the tablet sector.
Having seen what Amazon can deliver when it comes to affordable yet useable tablets, I’m very excited about the prospect of an Amazon smartphone. Is this something you’d like to see?
[via The Next Web]