Amazon Reportedly Working with HTC for Prime Smartphone

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News Posted: Wed, Oct 16 2013 9:07 AM
What happens when the world's largest online retailer teams up with the smartphone maker that helped pioneer Android as viable alternative to iOS in the smartphone space? We may soon find out. Word on the web is that Amazon and HTC are in discussions about building a handset for users of Amazon's Prime service.

There have been several rumors in the past of Amazon developing a smartphone, but so far, none of them have come to fruition. However, the timing feels right for the these two companies to make a splash in the smartphone sector, as both would have a lot to gain.

HTC Phone

For HTC, the potential for massive sales could turn the company's fortunes around after posting its first ever quarterly loss. And for Amazon, this could significantly boost its Prime Instant Video service, especially if sales ended up being anywhere near its Kindle sales.

Nothing is yet official, and according to Bloomberg and its sources consisting of "two people familiar with the matter," there hasn't been a decision on whether to proceed with this project. The only official information we have are comments made by an Amazon spokesperson last month.

"We have no plans to offer a phone this year," the spokesperson said. "If we were to launch a phone in the future, it would not be free."
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They didn't say anything about the service costs. They might do something similar to the FreedomPop model of very limited free service, and low-cost additional rates.

Amazon, from what I understand, takes a loss on the cost of Kindles, and makes it up by sales. And the first-gen Kindles had free internet for life.

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