Amazon Smartphone: Too Soon Or Too Far?

Rumors of Amazon launching its own smartphone have been surfacing for a while and now the question arises if Amazon's smartphone is too far or too soon?

Amazon is a well-known online retailer and the company is also reknowned for its Kindle line-up of tablets. Speculations suggest that Amazon is now working on its own smartphones.

A recent DigiTimes report cites sources in the industry supply chain and says, "The sources did indicate, however, that while Amazon is looking to a second-quarter release date for the device, it may not be able to release the smartphone on schedule, as production progress at its manufacturing partner, Foxconn International Holdings (FIH), has not been as smooth as expected."

The DigiTimes report also says that the company was previously considering a 4.3-inch smartphone, but later scrapped the idea, as many smartphone buyers are now looking for a larger-size screen on its handset like the Samsung Galaxy S4, Google Nexus 4 and others.

Rumors suggest that Amazon is planning to release its handset in the second quarter of 2013. However, according to a previous DigiTimes report, the company's smartphone is still in the engineering stage, indicating that the smartphone may not be ready soon and may not release as expected by the company.

"The production of Amazon's much-fanfared smartphone is still under its engineering verification test (EVT) period due to issues related to its mobile platform, the sources indicated, adding that the development of the smartphone is being handled by FIH's subsidiary Ensky Tech, which has been responsible for the production of Amazon's e-book readers and tablets," said a previous DigiTimes report.

The competition in the smartphone space has increased rapidly in recent years. With a smartphone of its own, Amazon will be diving in deep waters; however, a strong and loyal customer base coupled with an expected low product pricing strategy, similar to Amazon's Kindle range of tablets, the company may be able to establish a foothold in the smartphone industry.

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