So much for those rumours that Amazon.com was looking to offer its oft-rumoured smartphone for free. A company spokesman today told JessicaLessin.com that not only would Amazon not launch a smartphone this year but that it “would not be free” if it decided to launch one later on. The spokesman would not provide any further details, including any about what other pricing arrangements it might have considered.
The statement also marks for the first time that Amazon has moved to dispel any rumours of it offering a smartphone this year.
A free Amazon-branded smartphone could be prove to be quite a disruptive force in the smartphone market. Instead of relying on the outright profits generated by the sale of the device as most manufacturers do, Amazon would likely be looking to generate sufficient revenues to effectively subsidize the device with online advertising and e-commerce sales. While a free Amazon smartphone would be unlikely to be a flagship smartphone, its price would likely find many fans willing to forego the latest and greatest in favour of an unbeatable price.
For now though, it appears that the Amazon smartphone is headed back to the rumour mill…
Source : Jessica Lessin