Delay Rumors for Amazon Smartphone

Delay Rumors for Amazon Smartphone

Amazon is working on as many ways as possible to get the consumer to buy stuff from it. One of those ways, however, may have hit a snag. Digitimes cited sources from within Amazon’s supply chain that the company’s rumored smartphone may have hit a setback. Plans were for Amazon to release the phone in the second quarter of this year, but Amazon’s manufacturing partner, Foxconn International Holdings, has hit some snags. The issues arise as the phone is still going through its engineering verification test (EVT) period, due in large part to problems related to its mobile platform.

Amazon is already selling multiple pieces of hardware, including the popular Kindle e-reader, as well as the Kindle Fire tablets. By expanding its hardware offerings, Amazon is going up against the likes of Apple, Google, and Samsung in the battle for consumer’s mind share. Amazon is taking a different approach than Apple and Samsung as it relates to hardware. CEO Jeff Bezos has said in the past Amazon breaks even on the devices, making money only when a customer uses it to purchase something. “Basically, we sell the hardware at our cost,” Bezos said in an interview with the BBC last year. “We’re not trying to make money on the hardware.”

Conversely, Apple and Samsung account for the majority of profits in the mobile device industry, with the iPhone and iPad and Samsung’s Galaxy line of smartphones and tablets. Rumors of an Amazon smartphone were first heard last year. An Amazon spokesman could not be immediately reached for comment for this story.

This article by Chris Ciaccia originally appeared on TheStreet.com.

Copyright (C) 2013 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.

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