Amazon Planning to Enter Smartphones Market, Seeks Foxconn Help

November 22, 2011
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After Amazon’s successful penetration of  the tablet computer market with its Kindle tablets, Amazon is up for another goal–to enter the smartphone market.

Citing sources from Taiwan Economic News, engineering and electronics site EE Times reports that Amazon has asked Foxconn for help with entering the smartphone market next year.  Foxconn manufactures electronic equipment and is one of the largest electronic device manufacturers with partner companies that include Apple, Cisco, Dell, Hewlett Packard, Nintendo, Nokia, Sony Ericsson, and Amazon.

Amazon and Foxconn are reportedly forming a joint manufacturing company. The partnership between the two companies is for the purpose of creating a new smartphone which will be carrying the Amazon label in the fourth quarter of 2012.

Amazon has not made any promise of any  possible features of its future smartphone, but there are already reports that this soon-to-be Amazon smartphone will most likely have the Texas Instruments OMAP 4430 processor and a dual-mode baseband chipset (HSPA+/CMDA EVDO) from Qualcomm.

Amazon is said to be eyeing the mid-range smartphone market, rather than the high-end smartphone market.  Considering the low price positioning of Amazon, it will most likely keep the material cost lower, which should be less than US$100 for a smartphone that normally would cost US$150 to  manufacture.

Amazon might probably sell the phones at a discount just as it did with the Kindle, making it a big hit in the market. Amazon will try to make its smartphones cheaper so that it would easily catch the attention of its market. The more people who buy its phones, the more that Amazon would be making profit on the software applications that it sells.

It looks like there are a lot to expect from Amazon in 2012–the Kindle Ice, an 8.9-inch Kindle Fire, and this Amazon smartphone.

With Amazon entering the smartphone scene with its lower-priced phone but with access to Amazon’s store, it is possible that Amazon can turn things down for other Android smartphones.

Do you think other Android smartphone makers should be worried?

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