Is Amazon.com Giving Away a 'Free Smartphone?'

According to reports, people familiar with Amazon says Amazon.com may be selling their long-rumored smartphone for free.

The speculation came in a few days before the Cupertino, Calif.-based Apple’s schedule of unveiling it low-cost version of its iPhone -- which will be on September 10.

Jessica Lessin and Amir Efrati, former reporter of Wall Street Journal, remarked that despite the fact that Amazon’s risky but unverified strategy to offer a “free” smartphone will most likely arouse interest of many prospective consumers, questions will still remain. The cost of the phone will be based on how Amazon works out its financial deals with hardware partners. On the other hand, some of their sources were not that swayed that Amazon’s free device strategy is even possible. The company will purportedly depend on consumers buying apps and digital media through services like Amazon and Amazon Prime to make up the cost.

Nevertheless, Amazon’s tendency to be a loss leader with its products proves that if anyone who can do this trick, it will surely by Amazon. CNET noticed that Amazon’s product, like Kindle, could be a “classic Amazon move” to entice consumers drawn into the company’s network for products.

With regards to the hardware, the speculation is that like Kindle, the company’s smartphone will be running in a “forked” version of Android which means that the Smartphone will be running on an open-sourced version of Google’s mobile operation system that is in need of Google Play store and Google apps. These would make Amazon’s smartphone in direct rival with other Google-official Android Phones.

Last May, the Wall Street Journal has reported about Amazon’s smartphone saying the smartphone would probably have an eye tracking technology and a “glasses-free” 3D screen. The company could also offer a low-cost version of the gadget, as reported by the Wall Street Journal.

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