Amazon set to enter smartphone market

If a new rumour is to be believed, Amazon could be about to shake up the smartphone market in the same way as it shook up the tablet market last year.

Bloomberg claims the company is currently developing an Android smartphone. The device is being developed in conjunction with Chinese manufacturer Foxconn, according to an inside source familiar with the 'private' plans.

It sounds like things are still in the early stages, with Amazon currently acquiring patents covering wireless technology which would help it defend against allegations of infringement. A wise move in light of all the recent company-to-company litigation. With that in mind, Amazon has drafted in experts in patent acquisition to put deals in place ahead of any phone build.

The reasoning behind the phone, profit margins aside, is simple. A smartphone would give Amazon a wider range of low-priced hardware devices to facilitate sales of digital books, music and movies. Just like the KIndle Fire tablet (pictured here).

The fact that the phone will be running Android and selling at a fairly cheap price point is pretty much all we can assume right now. It's unlikely to see the light of day in 2012, but it should be a significant launch as we enter 2013. Although, with so many budget phones already in the wild, you suspect Amazon will have to offer something unique to really pull in the sales.

Source: Bloomberg

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