Amazon may be building a smartphone to take on the iPhone

Amazon has been in the news a lot off late, as reports suggest that the brand is scheduled to release their next generation Kindle Fire tablets that aim to pose a threat to the recently announced Google Nexus 7 tablet. While the launch of the Kindle Fire 2 may be right around the corner, a fresh report by Bloomberg suggests that Amazon may be preparing a smartphone as well that is believed to compete directly with Apple’s iPhone.

Could we see a Kindle phone? ( Image Credit)

As per the report, two sources have informed them that Amazon is believed to be building a tablet that will run on Google’s Android operating system. The sources did not want to be identified as these plans by Amazon are private. The report claims that one of their sources has informed them that Chinese mobile manufacturer Foxconn International Holdings Ltd. is working with Amazon on building this handset. The report states, “Amazon is seeking to complement the smartphone strategy by acquiring patents that cover wireless technology and would help it defend against allegations of infringement, other people with knowledge of the matter said.”

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The report went on to add, “A smartphone would give Amazon a wider range of low-priced hardware devices that bolster its strategy of making money from digital books, songs and movies. It would help Chief Executive Officer Jeff Bezos, who made a foray into tablets with the Kindle Fire, carve out a slice of the market for advanced wireless handsets. Manufacturers led by Samsung Electronics Co. and Apple shipped 398.4 million smartphones in the first quarter, according to researcher IDC.”

This is not the first time that Amazon has sought to enter Apple’s market, as last year, the brand successfully launched their Kindle Fire. This tablet was the only tablet that managed to pose a threat to Apple’s dominance in the tablet market. A lot of talk is surrounding the launch of the Kindle Fire 2 with reports suggesting that the tablet will have better integrated lighting and more hardware improvements. No details about the processor and the other specs have been revealed yet. When it was first launched, the Kindle Fire was touted by many as the ‘iPad Killer’, primarily because of the price tag that came attached. It faced competition from the likes of Barnes & Noble Nook tablet, but the competition is going to be even more massive this time, if the pricing of the Fire 2 and the Nexus 7 is going to be similar. Amazon may also announce Kindle Touch, which will be at a lower price point. What this means is that ‘low budget but non-performing’ tablets will soon be phased out as the world shifts focus to decent quality products selling at ultra-low prices.

In a move that may directly compete with Apple’s iPad, rumours floating around indicate that Amazon is likely to launch a 10.1-inch Kindle Fire in the third quarter of 2012, while tentatively suspending the launch of a speculated 8.9-inch model.

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