Only last month Amazon finally launched its highly
anticipated Kindle Fire, a 7in Android tablet and reports suggest we’ll be
seeing a Kindle smartphone from the online retailer by this time next year.
A research note issued by brokerage firm, Citigroup, dated
17 November, cites its own supply-chain channel check in Asia.
The research reveals that Amazon is working closely with Foxconn to develop the
phone – the same company which produces the iPhone and iPad for Apple.
“With the clear success of the Kindle e-Reader over the
past 3 years, and Kindle Fire possibly succeeding in the low-priced tablet
market, we view this as the next logical step for Amazon,” the brokerage
The phone is expected to have a Texas Instruments OMAP
processor and Qualcomm’s baseband chips – the same as those already used in the
Kindle e-readers. Citigroup estimate the cost of building the phone at between
$150 and $170 (£95-£110).
Like the Kindle and the Kindle Fire (above), Amazon may go for the
option of selling its smartphone at, or even below, cost hoping to rake back
the money by selling content including music, films and books to its customers.
With the Kindle Fire still not getting a definite
release date in the UK
– if we’re to get it at all – the chances of us seeing the Kindle smartphone
anytime before 2013 seem slim.
Does a sub-£100 Amazon smartphone sound like an enticing proposition? Let us know in the comments.