All Things D: Amazon Phone for 2012?

[cbn]

http://allthingsd.com/20111117/amazon-kindlephone-for-2012/

Amazon KindlePhone for 2012?

November 17, 2011 at 7:15 am PT

Amazon just rolled out a full-fledged tablet. Next year, says Citigroup’s research department, it could have its own phone. Here’s the topline from analyst Mark Mahaney’s newest note:

“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 and his team guess that Amazon’s phone may cost it $150 to $170 to build, and it’s conceivable that the company will sell it for something 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.”

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.

 

[Pliablemoose]

I wouldn't be surprised at all.

I think they'll be carefully monitoring the buying habits of Fire users to see if it pays off for them.

Unfortunately for Amazon, states like CA will be collecting taxes from Amazon in a year or so, at that point, I think Amazon will be in trouble.

 

[Dulanic]

I wouldn't be surprised at all.

I think they'll be carefully monitoring the buying habits of Fire users to see if it pays off for them.

Unfortunately for Amazon, states like CA will be collecting taxes from Amazon in a year or so, at that point, I think Amazon will be in trouble.

I doubt it will be a CA thing for long. Taxes are coming for internet purchases... the question is how soon? I am guessing within the next year myself.

Even Amazon has been pushing for fair and equal taxation for all websites /w all states.

 

[shortylickens]

If it only has 6Gb onboard and no SD slot, it will stink.
I hope they learn their lesson this time around.