Analyst Claims Amazon Will Launch a Smartphone In 2012

News | Monday November 14 2011 7:05 AM | Comments (0) Tags: , , , , , ,

– their $199 tablet earlier in the week, which many industry experts believe will give
a run for its money.
It looks like Kindle Fire may not be the only thing that Apple needs to be worried about.
reports that according to Citigroup analyst Mark Mahaney, Amazon could launch its own smartphone in 2012.
“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. Based on our supply chain check, we believe FIH is now jointly developing the phone with Amazon. However, we believe that Amazon will pay NRE (non-recurring engineering fees) to FIH but the device and multiple components will actually be manufactured by Hon Hai’s TMS business group (the same business group that makes Amazon’s E-reader and the 8.9” Amazon tablet). We believe the smartphone will adopt Texas Instrument’s OMAP 4 processor and is very likely to adopt QCOM’s dual mode 6-series standalone baseband given QCOM has been a long-time baseband supplier for Amazon’s E-reader.”
Mahaney believes that Amazon could build a smartphone for $150 to $170 and sell it close to that price.
“For a normal brand like HTC, they need to price the product at US$243 to make 30% gross margin. If Amazon is actually willing to lose some money on the device, the price gap could be even bigger.”
If Mahaney’s prediction turns out to be accurate, we expect Amazon’s smartphone to run on a heavily skinned version of Android just like Kindle Fire.
What do you think about a Kindle smartphone? Do you think Apple should be worried? Let us know in the comments.

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