Amazon.com finally broke its silence and clarified on Sunday that it is not giving away or selling a "free smartphone."
A report from Jessica Lessin, a former WSJ reporter, came out on Friday that the online retailer is considering options of marketing a smartphone for $0.00. The reporter detailed it on her website.
Reporters tried to reach out to the Seattle company the same day but had no luck on getting details or confirmation.
But finally, a spokesperson for Amazon.com emailed the Wall Street Journal on Sunday to retract and deny the said report.
“We have no plans to offer a phone this year,” says the email. “If we were to launch a phone in the future, it would not be free.”
While Amazon.com clarified that there is no such thing as "free smartphone" from them, it has given hint that it is considering a business expansion of making its own smartphone.
The Wall Street Journal also reported early this year that the online retailer is developing smartphones at its Lab126 unit. Sources said that it will feature 3D images and responsive to eye movements. However, the same sources couldn't confirm if it will be released in the market.
Jessica Lessin included in her report that the said smartphone will be released but has been postponed because of the company needs to review first how to make it free.
The idea of selling a smartphone at $0.00 is not something impossible as it could happen when it is tied up in a two-year contract. However, that is dependent on the subsidies that the wireless providers are willing to shoulder.
While Amazon.com has been continuously expanding its business for the past few years, it is still uncertain if it is venturing to the smartphone industry where the competition is really tough.
