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Rumours emerge of Amazon smartphone

Amazon may be working on a new smartphone  following the release of the kindle in 2007 16000646 800482229 0 0 14035719 300

Selecting a new smartphone is already a pretty challenging task. Choosing between the Apple iPhone, the Samsung Galaxy or any of the other quality phones on the marketplace can be tough, not to mention trying to find the best mobile plan to suit your needs!

But that choice might soon get even harder, with rumours emerging that online shopping giant Amazon may be working on a smartphone of its own.

According to an article published by Bloomberg on July 7, it is hoped that the device will be able to compete with Apple and Google for a share of the lucrative smartphone market.

Sources close to the project claim that Amazon has engaged Chinese mobile phone maker Foxconn to build the device, Bloomberg reports.

According to Victor Anthony, an analyst at Topeka Capital Markets, the move is the next logical step for Amazon and would allow the company to increase the number of Amazon store touch points.

Furthermore, Anthony expects that the Amazon smartphone would likely be a low margin product.  

"Amazon has a history of pricing their products aggressively, and if they do come out with a smartphone I expect them to do the same," Anthony told Bloomberg in an interview released July 6.

"It's still a wide open market ... there's still room for an entrant to come in with a differentiated product, an intelligently designed product, and be able to take market share."

Amazon is no stranger to hardware, having released the Kindle e-book reader in November of 2007 and the mini-tablet Kindle Fire in September 2011.

Posted by Eve Gillespie