[Rumor] Foxconn Contracts to Build 5 Million Amazon Smartphones

[dgstorm]

For months we have had a small trickle of rumors suggesting that Amazon intends to extend their massive success with tablets into other areas of the mobile world by developing an Amazon smartphone that is likely to be Android powered. Today's newest rumor seems to confirm these rumors, and comes along with some more juicy details. Supposedly, Amazon has already contracted with Foxconn to build 5 million Amazon smartphones. Here's a quote with some additional info,

In fact, Foxconn has reportedly actively scrambled for Amazon’s contract order for the smartphone model earlier, in order to seek a new driver for its handset shipment after witnessing its major customers, such as Nokia, bested by other smartphone vendors.

Now that Foxconn is reportedly working on Amazon’s smartphone, a couple of Taiwanese parts suppliers maintaining close business ties with the electronic contract manufacturer, including J Touch Corp. and Young Fast Optoelectronics Co., Ltd. (touch panel makers), are very likely to share the huge business pie.

Market observers pointed out that Amazon has emerged as one of the most competitive players in the global market for mobile Internet devices, mostly thanks to its low pricing strategy. Backed by its huge loyal consumer base and successful marketing strategies, the U.S. brand is believed to quickly gain its ground in the segment for smartphones in the short term.

In addition to the upcoming budget-priced smartphone model, the U.S. brand has been developing a new-edition Kindle Fire, which is scheduled to land on the market in the third quarter of 2013 and will be allegedly supplied by Quanta Computer Inc. and Compal Electronics Inc.

Supposedly, this new Amazon smartphone will debut sometime between the second and third quarter of next year and will sell between $100-$200 dollars. The source of this info was not specific on whether that price was the manufacturer cost, the full retail cost, or the subsidized cost. Of course, we will keep an eye on this and let you guys know as soon as we hear anything else.

Source: Kindle-FireForum via CENS

 

[FoxKat]

Look out, Apple...it's a rectangle with rounded corners!!

 

[LoneWolfArcher]

I think this rumor is either wrong or inaccurate.

No way would Amazon only order 5 million. They'd be looking at selling 4-5 times that many of these things. Unless this is an initial order with the ability to increase it depending on demand.