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Amazon Preparing To Launch Smartphone Next Year

The longtime bookseller and online retailer, Amazon.com Inc.,  is working on a smartphone after successful launch of  its Kindle Fire tablet. This would be gradual expansion from e-reader, tablets to smartphone, which is expected to be unveiled in the fourth quarter of next year (2012).

The Amazon phone will be a mid range device that will use a processor from Texas Instruments Inc. and connectivity chips from Qualcomm Inc. This yet to be named phone will be manufactured by Hon Hai Precision Industry Co, which makes other devices for Amazon, as well as Apple’s iPhone and iPad.

If rumors are to be believed then Amazon smartphone will  have an 8 megapixel camera, a 4″ inch touch screen and an HSPA+ radio, a newer generation of cellular technology that allows for faster data uploading and downloading.

Amazon’s recently launched Kindle Fire tablet, priced at $199,  is receiving very good response and will give tough challenge to Apple’s iPad this holiday season. This has set the stage for Amazon to push into mobile phones. The idea would be to use the device to sell more digital media, such as books and music, rather than making money on the phone itself. The device may retail for less than other phones because Amazon doesn’t need to make money on it, in-fact chances are that they may sell it to carriers for $170 — the cost of production and licensing the product — or maybe even less!

However, everything being said, till now, Amazon has not commented about above development. There’s is no official word from Amazon itself. So as of now, just keep your fingers crossed that they do come with something awesome 😉

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