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Amazon: if and when we release our rumored Kindle phone, it won't be free

News by Andrew Kameka on Monday September 09, 2013.

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Since Amazon introduced the Kindle Fire two years ago, rumors have circulated that the online retailer would follow-up with an Amazon phone running a similar build of Android. The Wall Street Journal reports that an Amazon spokesperson has denied reports that the company would sell the phone this year.

JessicaLessin.com posted a story claiming that Amazon is toying with the idea to sell a smartphone for free. The no-cost smartphone would be a loss-leader for the company; Amazon would not make any money from device sales but could raise revenues from selling book, app, music, video, and other services. A similar strategy is employed for the Kindle Fire, which Amazon claims doesn't make money.

In a statement to the Wall Street Journal, an Amazon spokesperson refuted the claim and said:

"We have no plans to offer a phone this year. If we were to launch phone in the future, it would not be free."

The denial shoots down rumors of a so-called "Kindle Phone" launching alongside the next Amazon tablet this fall. Multiple outlets have claimed that Amazon would sell a phone but this is the first time that Amazon has commented publicly on the supposed device. Why break from its "No Comment" reputation? That's unclear, but entering the smartphone industry must be something that company is considering if it wishes to temper expectations about future plans and keep its options open for taking on the likes of Apple and Samsung.

source: Wall Street Journal

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Andrew Kameka
Andrew is based in Miami, Florida.

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