Amazon will introduce a Smartphone based on Android operating system. Amazon is closely working with Foxconn which also manufactures the iPhone to produce the phone. The news reported by Bloomberg has send blogosphere in to more speculation and analysis of the news. Bloomberg sources has not provided any detail’s of about specification of the Smartphone.
If Amazon will introduce a Smartphone then it will not surprise industry because it is a logical step for Amazon.
Amazon has played its hardware strategy with great smartness. Amazon avoided direct competition as much as Possible and entered in Tablet market first. Amazon has already established Kindlefire as a successful low-priced Tablet with 65% market share of US. Amazon has almost every piece of hardware and software is in place to launch a Smartphone.
Amazon smartphone is just another piece to safeguard and increase the market share of Amazon. I will not be surprise if down the line Amazon will build a complete ecosystem to sell digital content.