Ecosystem Ownage

Ecosystem Ownage

Does Amazon Really Want to Build A Smartphone?

Mr. Bezos.

Hard on the heels of last week’s Facebook phone rumors comes new smartphone pot-stirring on the part of Wired. The question: Why shouldn’t Amazon take its foothold in the tablet market and tackle smartphones? Uh, we can think of a couple of reasons.

This isn’t the first mention of an Amazon smartphone. Back in November, All Things D got hold of a note that predicted the device would be launched by the end of the year, based on backdoor intel (called channel checks) from Amazon’s Asian suppliers. The memo suggests the phone would cost $150 to $170 to build–and of course, Amazon has never been shy about cutting it close on margins. Now that it’s already May, Wired runs the pros and cons. The ability to sell on its own homepage is not to be underestimated as an advantage. ABI Research analyst  Aapo Markkanen–who calls a smartphone “a logical next step” for Amazon–points to the “lock-in effect” of the company’s content ecosystem: Read More