Looking to tap into the best possible method of getting people to notice and use your product, Amazon are believed to be planning on making their upcoming smartphone device offered free of charge to all customers, with the option for users to take it on either ‘with or without’ a contract.
In a similar but exaggerated version of their loss-making ‘budget tablet’ the Kindle Fire, Amazon hope that as before (but into an even more crowded market) they can earn back the hit taken on their income through increased user numbers and publicity.
Money, though, will have to come exclusively as a byproduct of those factors, gaining no immediate return on a device which is reportedly costing them around $200 per unit to create, with revenue planned to be generated through advertising sales and promotion of their online retail services such as the dedicated and pre-installed ‘Amazon App Store’, the latter of which is seen across all Amazon own-brand devices, whilst the cheapest Kindle Fire is the model on which they will base themselves for advertising sales purposes.
As reported by Jessicalessin.com, any completely free product as rumoured would have some stumbling blocks to overcome, such as meeting financial arrangements with hardware manufacturers, and whilst some potential providers of contract service to customers have been contacted over carrying the set, it is believed Amazon would primarily sell any smartphone product through their own popular online store direct to customers (possibly offering either an Amazon phone contract or a pay-as-you service).
However, the small matter of being ‘free of charge’ might not prevent high-end technology from being applied as opposed to a generic Android device, with Amazon reportedly planning a 3D-capable product as a second and more premium option for the rumoured ‘4.7-inch’ model, although it would be likely that there would be a cost attached to it.
Recent denials made by Amazon on the matter suggest neither might be free, but the rumours had been fairly believable given their track record, so at least a below-market-average cost for each model of smartphone would be a fairly feasible concept for the American company… but regardless of what they try to promote their new products, would they be able to make an impact amongst more established names?