Posted on | November 23, 2011 | No Comments
Citigroup said in a research note that it believes the Seattle-based online retail giant designs to launch a smartphone next year.
Amazon, which began shipping a tablet computer last week, may be eyeing the smartphone market.
Foxconn is now jointly developing the phone with Amazon, Mahaney said, & it will be manufactured by Hon Hai’s TMS business group, which makes Amazon’s Kindle electronic book reader & Kindle Fire tablet.
“Based on our supply chain channel checks in Asia led by Kevin Chang, Citi’s Taipei-based hardware research analyst, they think an Amazon Smartphone will be launched in 4Q12″ Citigroup analyst Mark Mahaney said.
With the clear success of the Kindle e-reader over the past years, & Kindle Fire possibly succeeding in the low-priced tablet market, they view this as the next logical step for Amazon.
The Citigroup analysts said they think the Amazon smartphone will use an OMAP four processor from New york Instruments & would cost Amazon around $150 to $170 to make.
The Kindle Fire sells for $199, less than half the cost of the least pricey iPad from Apple. According to Amazon, the Fire is already the bestselling item across all of Amazon.com