A report surfaced late last week reigniting claims that Amazon has been hard at work building its own smartphone. The report even suggested that Amazon was exploring unique options that would allow it to basically give the phone away — though likely with some form of contract, either through Amazon or a wireless carrier. None of that is true, Amazon said.
Jessica Lessin’s Web site, the home of a former writer for The Wall Street Journal that broke the original Amazon story, recently talked to the online retailer and clarified in a new story published on Sunday. Amazon said any such device would not be free and declined to comment on any speculation that it’s building its own smartphone.
Despite its comments, a smartphone probably isn’t out of the question for Amazon. The company generates revenue from its Kindle Fire devices — which it breaks even on — by selling digital items from its ecosystem, such as music, books, videos and more. The same strategy could potentially work for a smartphone, too.