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Amazon smartphone coming soon?

Posted: 23 Nov 2011     Print Version  Bookmark and Share

Keywords:smartphone  tablet market  e-book reader 

The e-commerce firm Amazon.com Inc. is expected to launch a smartphone in the fourth quarter of 2012. "Based on our supply chain channel checks in Asia, we believe an Amazon Smartphone will be launched in 4Q12," said a Citi research note.

Citigroup believes that Foxconn International Holdings (FIH) is 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 inch Amazon tablet)."

The smartphone is expected to adopt Texas Instrument's OMAP 4 processor and is very likely to adopt QCOM's dual mode 6-series stand-alone base band given QCOM has been a long-time base band supplier for Amazon's E-reader, quotes Citigroup in its note.

"We expect Amazon's smartphone to be a mid-end device based on the processor it adopts," Citigroup said, and pegged the company's total cost for making such a phone at Rs.6,726.46 ($150)- Rs.7,623.32 ($170 )each.

The company's Kindle Fire tablet device uses components from Texas Instruments, Samsung Electronics, LG Electronics and Hynix Semiconductor. The device is expected to sell as many as five million in the fourth quarter and more next year.

"We continue to believe Amazon has now set its eyes on the Mobile (and tablet) Media and Product consumption frontier."





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