Amazon may be planning smartphone: Citi analysts

Nov 17, 2011
Members of the media cover the launch of the new Amazon tablet, the Kindle Fire, in September 2011 in New York City. Amazon, which began shipping a tablet computer this week, may be eyeing the smartphone market.

Amazon, which began shipping a tablet computer this week, may be eyeing the smartphone market.

Citigroup said in a research note published on Thursday that it believes the Seattle-based online retail giant plans to launch a smartphone next year.

"Based on our supply chain channel checks in Asia led by Kevin Chang, Citi's Taipei-based hardware research analyst, we believe an Amazon Smartphone will be launched in 4Q12," Citigroup analyst Mark Mahaney said.

"We believe (Foxconn) is now jointly developing the phone with Amazon," Mahaney said, and it will be manufactured by Hon Hai's TMS business group, which makes Amazon's Kindle and Kindle Fire tablet.

The Citigroup analysts said they believe the Amazon smartphone will use an OMAP 4 processor from Texas Instruments and would cost Amazon around $150 to $170 to make.

"With the clear success of the Kindle e-reader over the past three years, and Kindle Fire possibly succeeding in the low-priced , we view this as the next logical step for Amazon," Mahaney said.

The Kindle Fire sells for $199, less than half the cost of the cheapest from Apple. According to Amazon, the Fire is already the "bestselling item across all of Amazon.com."

Explore further: Google challenges nonprofits on ideas to use Glass

add to favorites email to friend print save as pdf

Related Stories

Amazon planning iPad rival by October: WSJ

Jul 13, 2011

Online retail giant Amazon plans to unveil a tablet computer before October in a bid to carve out a slice of a growing market dominated by Apple's iPad, The Wall Street Journal reported Wednesday.

Analysis says $79 Kindle costs $84 to make

Nov 11, 2011

A recent analysis from IHS iSuppli determined that Amazon's $79 Kindle e-reader, which is the online retailer's cheapest Kindle thus far, costs $84.25 to make.

Recommended for you

Japan's digital eyes show your emotions for you

Apr 21, 2014

Can't be bothered to show anyone what you're thinking? Then a Japanese scientist has the answer—a pair of digital eyes that can express delight and anger, or even feign boredom.

Review: With Galaxy S5, Samsung proves less can be more

Apr 20, 2014

Samsung Electronics Co. has produced the most formidable rival yet to the iPhone 5S: the Galaxy S5. The device, released over the weekend, is the fifth edition of the company's successful line of Galaxy S ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

dutchman
not rated yet Nov 18, 2011
Amazon sells the Kindles below cost (sort of like ink-jet printers are priced at or below cost) with the expectation that there will be add-on sales - in Amazon's case, their e-books.

More news stories

Amazon launches grocery service for Prime members

Amazon is taking aim at grocery stores and discounters like Wal-Mart with a grocery service that lets its Prime loyalty club members fill up to a 45-pound box with groceries and get it shipped for a flat rate of $5.99.

Facebook buys fitness app Moves

Facebook has bought the fitness app Moves, which helps users monitor daily physical activity and their calorie counts on a smartphone.

Study links California drought to global warming

While researchers have sometimes connected weather extremes to man-made global warming, usually it is not done in real time. Now a study is asserting a link between climate change and both the intensifying California drought ...