Some years ago Nokia used to make their on SoCs and then suddenly decided to stop. At the time they annually sold about 400M phones and obviously reached the conclusion that it even at those volumes it did not make economic sense to keep designing asics. Also Nokia really excels at sourcing and logistics, that was never the problem.
From that I am quite convinced that there is very little reason for a phone maker to do custom SoC. The only reasonable explanation for Apple doing it is fear of getting cloned.
For Amazon to go that route is just ridiculous, they should drop Omap anyhow and look to MediaTek or Boxchip to cut costs even further.
I would agree. My initial reaction is that this doesn't make a great deal of sense for Amazon, but I do appreciate what Roger Kay says on page 2 of this story. Like everything else, it all depends on the purchase price. If they can get OMAP (or some portion of OMAP) for a song, maybe it makes sense. Otherwise, I don't know that it does. I am also not totally convinced that there really are advanced negotiations taking place on this.