Amazon Is Rumored to Launch a Phone

Citing checks of the company’s supply chain, a Citigroup analyst has issued a note saying that the phone can cost less than $ 200 and is likely to be available by mid next year, according to press reports in several publications financial.

“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 investor’s note said, according to a report in Reuters.

It is expected that the phone will run Google’s Android Operating system, according to the blog AllThingsD:

“(Mark) Mahaney’s note doesn’t spell out that the phone will use Google’s Android operating system, but it suggests that will be the case by positing that Amazon will need to pay Microsoft an ‘OS royalty’ — Microsoft has recently been able to extract royalty payments from other Android hardware partners.”

Of course, this is entirely speculative, and based on a report by an analyst. Amazon did not immediately respond to CNN’s request for comment on Friday morning, and not know for sure if the company is working on a phone.

However, it is interesting for technology journalists and investors, in part because Amazon is being dragged further from its roots as an e-commerce website and new areas of technology, including hardware development.

Amazong’s Kindle e-reader has been successful for years, and Amazon has launched this week its new tablet, the Kindle Fire in the market for $ 200. Reviewers say the Kindle Fire is not amazing – not as powerful as the iPad – but are generally impressed with it because of its very low price. Apple iPad sells for $ 500 to $ 830.

The Amazon phone would cost the company $ 150 to $ 170 to make, and the Amazon – always one to offer low prices, even when you lose money on a sale – is likely to offer the phone for about that price, Peter Kafka at AllThingsD writes.

However, all this talk about a phone from Amazon raises a big question:

Would you want to buy it?

Mike Elgan, a Silicon Valley tech columnist, asked this question of his followers on Google+, the answers well not very encouraging. Mostly negative.

What you think? Would you go for it?

Via CNN Tech

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