Article taken from: Vancouver Sun http://www.vancouversun.com/business/technology/Amazon+launch+smartphone+2012+Citigroup/5733264/story.html

This article is about Amazon’s step into the mobile (smartphone) industry. Because of its great success in the creation of the Kindle, Amazon is thinking about introducing its own smartphone next year (2012).

It will differentiate its product by offering low prices for the smartphone however the smartphone will be a “mid-end” phone so the phone will not be updated with the latest phone technologies.

Amazon is joining Foxconn International Holdings Ltd to bring about the production of this smart phone.

I think there are definitely advantages to this new move from Amazon however there are clear risks with this decision as well.

Firstly, Amazon is well-known site and with their kindle being a great success, consumers will most likely trust Amazon with their next product. But, with that said, Amazon is not known for making smart phones. This could cause a lot of suspicions from the general consumer, especially when there are established smart phone companies already out there.

Furthermore since Amazon will be selling at low prices they will most likely be making a loss.

At the end of the day though, Amazon is an established corporation and because of this, it might be a risk worth taking because the losses won’t affect them that greatly since they have so many other products consumers happily purchase.