Amazon has been rumored to be working on a smartphone for quite some time now. They've denied it a few times, but we're sure that it's still in the works. As most of you know, Amazon like to price their products as low as they can. For example the Kindle Fire, that was the first 7-inch tablet that started this whole race to the bottom. However, Amazon's tablets aren't technically Android devices. I say this because they usually fork Android a bit and you'll never know that you're running Android.
That leads us to this latest report, that's coming out of The Wall Street Journal vets, Jessica Lessin and Amir Efrati that say the launch is imminent and that Amazon is looking to price this device at just $0.
A free smartphone sounds pretty good. Especially if they can make it work on all the carriers. Then the other mid-range devices are going to have a pretty steep hill to climb. Imagine getting a free smartphone without a 2-year contract? Awesome right? Although you can do that now with our Moto X giveaway….
The next question is, who's gonna build it? We all know that Chinese manufacturers like Huawei, ZTE, Xiaomi and a few others are capable of building them cheap. For example, Xiaomi just announced the MI3 for about $327 USD and that phone is a beast. With a Snapdragon 800 processor and everything. Amazon already sells their devices below cost, with the assumption that you'll be using Amazon services, and that's where they'll make their money back.
Additionally, Lessin and Efrati are reporting "free strategy isn't set in stone and depends on several factors, including Amazon's ability to work out financial arrangements with hardware partners." You know the hardware teams at Apple, Google, and even Microsoft are getting pretty nervous. They are already having trouble competing with Amazon, and a free smartphone isn't going to help.
How many of you would get this free smartphone from Amazon, even if it did have ads on the lock screen?