It is a natural progression for Amazon to enter the mobile communication market when it already has Kindle and its new sibling 'Fire' with WiFi connectivity. But these are NOT the devices like HTC's or Samsung's smart mobile appliances which are much better architected for mobile comm plus surfing / reading / watching content.
But what is not clear from the article above is: how is Amazon getting mobile device design done? Outsourced? Foxconn as many above have pointed out is a contract manufacturer, may have staff with relevant design experience but utilizing that may not give any leverage to Amazon in IP or uniqueness!
Amazon's hope is to sell more eBooks or online video if customers use their device. Nonetheless, it is difficult to believe that Amazon would consider entering smartphone market so late. What would be the benefit over launching apps to various smartphones/ tablets platform? Will Amazon release its own Ultrabook?
This type of "technology transfer" is inevitable. The only thing that one can hope for is a 6 to 12 month head start. In particular are the various packaging technologies. I just attended that 2.5d 3d packaging conference and the various packaging houses are showing technologies that are coming in the 1 to 2 year time frame. Now instead of the foxes having to go and find the henhouse to invade, the hens are coming to the foxhouses...
Interesting to read of Amazon now considering to enter the mobile phone market.
I funny how a company that started selling things through the internet can now go to make their own mobile phone.
Interesting comments also by DrQuine and mark.
Though... Foxconn does provide manufacturing to a lot of companies... is this the first time Foxconn will make development work?
And yes, is also the first time I here somebody questioning the claim that Amazon is loosing money with the kindle Fire. Is there an official statement from Amazon?
why do people keep repeating this claim that the Fire is being sold under cost. there have been several teardowns, and no consensus on what Amazon's cost actually is. given that the tablet can certainly be used without recurring payments to Amazon, it simply makes no sense for Amazon to subsidize them. repeating the claim boils down to "Amazon is wasting money".
This would seem to be a recipe for a monumental lawsuit - especially if any leaks occur between development teams. What processes does Foxconn use to isolate competing development teams? In context, even the most innocent observations could provide critical competitive insights (how many touch screens are being ordered, the nature of subcontracting work being requested, even the appearance of new devices on the local WiFi network). It would also seem to fly in the face of current concerns regarding business continuity - even the competitors' operations are co-located!