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AT&T objected to Amazon using HTC for a low-cost phone
Before Amazon designed and released their own phone, there were rumors that HTC was going to design a low-cost Amazon phone. Now, as Engadget points out, a site called The Information claims that it has sources stating that HTC had in fact landed a deal to make a low-end Amazon phone.
That is, until AT&T objected because it felt that it wouldn’t have a US exclusive on the device. This forced Amazon to cancel their contract with HTC. Anyone who pays attention to AT&T’s anti-competitive history won’t be surprised to see AT&T trying to keep the smartphone industry as small as possible.
As we wrote about recently, AT&T demands that other companies and state/federal governments give them a “level playing field” with broadband technology whenever AT&T is entering a new market. Yet, AT&T will also do their best to stop any and all competition from acquiring that “level playing field” when AT&T is the one already in power.
“Amazon missed a chance to enter the market for low-cost smartphones; its recently launched high-end phone seems to be selling slowly. The beleaguered HTC lost out on what could have been a new revenue stream, and also missed an opportunity to show other partners that it had new momentum.” – TheInformation (t/p BGR)
Then again, considering that the Amazon phone has been a significant failure, maybe HTC dodged a bullet. Two days ago, Amazon reduced the price of the Amazon phone from $199 to $0.99 with an AT&T contract. Even with this price drop, it is doubtful that the phone will see any significant sales.
Read more: http://www.businessinsider.com/att-broke-up-amazon-htc-deal-2014-9#ixzz3D1CZ6GL8