Seeking Alpha

Report: Amazon plans to offer smartphone for free

  • Ex-WSJ reporters Amir Efrati and Jessica Lessin state Amazon (AMZN +0.6%), no stranger to subsidizing hardware, is looking to provide its long-expected smartphone for free to consumers.
  • However, they add "there are many unanswered questions about the plan and what strings will be attached for customers," such as whether an Amazon Prime subscription will be required.
  • Amazon plans to sell the phone through its site, rather than through carriers. The company's smartphone efforts have reportedly been slowed down by a reluctance among manufacturers to anger Google by building a phone running a non-Google version of Android.
  • Digitimes and other Taiwanese media sources have been reporting for a while an Amazon smartphone is on the way, but most of their ETAs have already proven to be inaccurate.
  • If Amazon prices its phone aggressively, it could tap into a booming market for low-end/mid-range Android hardware, particularly in emerging markets. Of course, its efforts to undercut tablet rivals with the Kindle Fire haven't exactly gone as planned, as a slew of Asian OEMs have come to offer competitively-priced Android tablets (backed by Google services).
Comments (14)
  • krk
    , contributor
    Comments (835) | Send Message
     
    This "Suicide Bomber" will one day blow itself up!
    6 Sep 2013, 05:13 PM Reply Like
  • BigJ1260
    , contributor
    Comments (206) | Send Message
     
    Kindle has really struggled now that other Android versions of Tablets are available similar price - and with the google play store available.

     

    A free Amazon phone withNO Apps will only sit on shelves
    Amazon is almost non existent in 3rd world counties where Free might be effective.
    This phone will be a joke in US - except for maybe older retired people who want "free'
    6 Sep 2013, 07:25 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1340) | Send Message
     
    The article doesn't address whether Amazon will make "free" low end phone or high end phone? Does Amazon's balance sheet have ability to sustain massive losses that would be initially inevitable to support "free" high end phones? If they only have low end phones, those buyers are not going to buy any content, apps, etc to pay back the "free" phone.

     

    As Amazon short, I hope AMZN makes massive effort in this space. Maybe just send everyone with Amazon account a "free" phone!
    7 Sep 2013, 10:57 AM Reply Like
  • doctorslernon
    , contributor
    Comments (92) | Send Message
     
    Sounds good for growing losses and higher stock price.
    6 Sep 2013, 07:38 PM Reply Like
  • chopchop0
    , contributor
    Comments (3800) | Send Message
     
    Made me LOL.
    7 Sep 2013, 06:07 PM Reply Like
  • Gary J
    , contributor
    Comments (5592) | Send Message
     
    They're almost as cheap as razors now. Ask Gillette how that worked out.
    7 Sep 2013, 06:52 AM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1340) | Send Message
     
    If that's the case, shouldnt you be buying hand over fist instead of selling recently as you have claimed?
    7 Sep 2013, 10:51 AM Reply Like
  • Gary J
    , contributor
    Comments (5592) | Send Message
     
    What makes you think I'm not? I don't think I would run it by you first.
    7 Sep 2013, 03:14 PM Reply Like
  • Boring Stock Lover
    , contributor
    Comments (36) | Send Message
     
    This would be the most classic move of all time. A free Amazon smartphone? I'm on the verge of tears I'm laughing so hard. A lower priced/basically free service intended to "grow market share" and drive higher profits? Oh, you mean like Kindle? Like Amazon Prime? As if both of those haven't already proved this strategy doesn't work. Anyone holding this stock is the DEFINITION of a lunatic and I can only hope this story is as funny going forward as it has been in the past.
    7 Sep 2013, 12:57 PM Reply Like
  • Gary J
    , contributor
    Comments (5592) | Send Message
     
    So easy to spot hurting short sellers of this stock. lol
    7 Sep 2013, 03:15 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1340) | Send Message
     
    "If Amazon prices its phone aggressively, it could tap into a booming market for low-end/mid-range Android hardware, particularly in emerging markets. "

     

    Emerging markets? aside from China, Amazon doesn't even have operations in emerging markets ( Brazil, Russia, India, etc ). Or do Amazon bulls think it would make sense to ship goods from warehouses located outside those markets? And oh, Amazon is getting crushed in China.
    7 Sep 2013, 03:15 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    Actually Amazon has a presence in more markets than you stated.
    7 Sep 2013, 05:26 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1340) | Send Message
     
    I'm going by http://amzn.to/17HnJJz . I thought they were in India but wasn;t listed on their site? Is there an emerging mkt where Amazon is leading player?
    7 Sep 2013, 06:16 PM Reply Like
  • Terry330
    , contributor
    Comments (870) | Send Message
     
    I will check the Amazon phone out, today use Tracfone for low monthly payments. Have Prime I use for 2 day shipping,movies, books.
    8 Sep 2013, 08:44 AM Reply Like
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