Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Next week, on Tuesday, Amazon is expected to launch its phone.
This has been a long-time coming. In January 2013, Amazon was reported to be planning to launch a powerful but cheap Android phone.
At that time the expectation was that Amazon would launch a smartphone costing $100-200 instead of the $600-800 you pay for an Apple or Samsung phone.
It was said that Amazon had signed a deal with Foxconn to build five million smartphones to be launched in the summer of 2013.
The cheap expected price tag is because Amazon has sold its e-readers and tablets at cost price to get people to use its retail services.
Amazon’s record of selling its hardware at cost price may give it a crucial edge over Apple and Samsung in the $340 billion phone market.Tags: amazon, Apple, cheap phone, samsung phone