A few days ago, Bloomberg reported that Amazon is working to develop its own smartphone in an effort to compete with Apple’s iPhone.
Amazon.com is developing a smartphone that would vie with Apple’s iPhone and handheld devices that run Google’s Android operating system, two people with knowledge of the matter said.
Foxconn International Holdings Ltd., the Chinese mobile- phone maker, is working with Amazon on the device, said one of the people, who asked not to be identified because the plans are private. Amazon is seeking to complement the smartphone strategy by acquiring patents that cover wireless technology and would help it defend against allegations of infringement, other people with knowledge of the matter said.
A smartphone would give Amazon a wider range of low-priced hardware devices that bolster its strategy of making money from digital books, songs and movies.
Apple has proven that vertical integration is quite the accelerant when it comes to racking up sales, and more importantly, profits. To that, Amazon’s expertise with respect to delivering media content to consumers puts it in an advantageous position compared to other companies like Samsung who primarily have to rely on Google as a conduit for delivering apps, music, movies and the like. To a large degree, Amazon getting into the smartphone business, while seemingly a bit out there on first glance, really does make a whole lot of sense.