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Amazon will launch a Kindle phone next year

November 18, 2011 Leave a comment

Amazon do already has its Kindle e-reader and its Kindle Fire tablet. Amazon has plans to spread out with Kindle Smartphones too.

The device, so far dubbed the Kindle Phone for want of any other name. According to All Things D, it will be unveiled around this time next year in the fourth of 2012. The source of the information is Citigroup’s research department which bases its theory on intelligence collected from supply chains.

Mark Maheney, an analyst at Citigroup said that supply chain channel checks in Asia led by Kevin Chang, Citi’s Taipei-based hardware research analyst and based on that they hope to unveil an Amazon Smartphone in 4Q12. He also informed that the device will use a Texas Instruments OMAP 4 processor and QCOM’s 6 series standalone baseband. It seems that QCOM will supply parts for Amazon’s Kindle e-reader.

The phone will run based on Google’ Android operating system (OS). Maheney mentioned that Amazon will consume Microsoft an “OS royalty” for licenses to patents that Microsoft claims cover Android. And, after all, The Amazon Kindle Fire tablet runs Android so we would expect a Kindle Phone to use the same OS. Citigroup estimate the device’s cost between $150 (£95) and  $170 (£107) to make and that it is possible that Amazon will sell it for close to these figures.

The Kindle Fire tablet is available only in the US at present, so the Kindle Phone could be released in the US before other countries too.

Source: theinquirer

Loss leader alert: $79 Amazon Kindle costs $84 to build

November 12, 2011 Leave a comment

Not only the Kindle’s specs and features attract people, but also, Amazon’s price tag kindles them to buy. Amazon’s Kindle has priced $79 which actually cost $84.25 for its manufacture, but another sign that Amazon cares more about profiting on the content it sells rather than hardware.

Jeff Bezos, Amazon’s CEO has challenged the bet to get low-cost hardware for consumers, will pay off immensely when they buy more digital content to make up for hardware losses. To the contrary, Apple makes its money on hardware sales and not as nearly as much on content. A market researach made by the company IHS iSuppli , conveys that the Kindle that is tagged with the price $79, actually costs estimated $84.25. This loss is not so severe as the $10 hit Amazon will take for every Kindle Fire it sells. The new basic Kindle still features an E-Ink screen and booted out keyboard from the previous generation. Thereby it has been reduced 30 percent lighter than the previous generation’s. The $79 model provides some advertising, known as “Special Offers” by Amazon. If the user’s choice is a non-ad-filled basic Kindle, it will consume the user of $109. But it does not make it nearly as good of a deal.

The $79 Kindle’s biggest non-Amazon competition will be the $99 Barnes & Noble Nook Simple Touch. B&N recently announced that it would add improved software and a better E-Ink screen that supposedly displays text 25 percent faster than the previous Nook Simple model.

The complete breakdown for materials on the Kindle can be viewed below:

$79 Kindle Materials

Display Module                                            : $30.50
Main PCB                                                         : $30.37
Other – Enclosures / Final Assembly : $15.08
Box Contents                                                 : $2.06
Misc Interface PCBs                                    : $0.59
Direct Material Cost Total                        : $78.59
Manufacturing Cost                                     : $5.66

Total Materials & Manufacturing: $84.25

Source: venturebeat