Amazon.com, best known for Kindle E-Book readers and tablets, is working out a way to offer its upcoming smartphone for free. Yes...You heard it correct! According to Amir Efrati and Jessica E. Lessin (via jessicalessin.com), Amazon is in advance stage of launching its first ever smartphone. The company is working on a smartphone for the past two years. The makers behind Kindle Fire tablet are planning to offer the device for free. And by "free "means free with no additional charge.
The report further says Amazon much awaited smartphone would be "Free" without the involvement of any carrier. The tech vendor will most likely sell the handset via parent site or Amazon.com. People familiar with the plan also told tech reporters that company had talked to few wireless carriers.
In US, after some time, even high-end handsets are being sold for free, when a user sign up for 2-year contract. The question now arises: What is the relevance of selling a phone for free. Is Amazon looking to promote its services - Be it movie rental, music, video and famed E-Book store trough a smartphone? Industry insiders are neither denying nor willing to accept so-called "Free" approach going around on the web.
Another most relevant question is the hardware cost attached the device. If Amazon is ready to offer the handset for free, that means the company aims to break even, not by selling hardware but via paid services. This concept might work in countries like US, but consumers residing in India and China would be ready to pay a premium for a virtual service.
Here, the market is not ready. Online shopping giant Flipkart tried to sell legal music via Flyte store, but the service had to close down due to few takers. Although, Indian consumers are open to the idea of purchasing e-books via online medium. India is the world's second largest e-book market after US, according to a new study.
Coming back to Amazon , the tech vendor is willing to sell smartphones for free may indicate a vague approach.
Chinese player Xiaomi has announced that they are ready to sell a premium handset for as low as $499 ( Rs. 32,599). At this price point, it is impossible for an established branded vendor to sell the device.
Moreover, recently it was said that Amazon could announce not one but two smartphone models. One would have a 3D display, whereas another would be an entry level handset (via Wall Street Journal). Now, 3D as a technology is officially declared dead, has Amazon trying to sell retarded 3D phones for free.
It could be the case, as reports in the past had suggested that Amazon might announce 3D supported smartphone. Stay tuned to GizBot for more updates.