HTC to make future Amazon phones

[EbookReader]

http://www.theverge.com/2013/10/15/4841260/htc-rumored-to-make-amazon-phone

Rumors of an Amazon smartphone have circulated for well over a year now, but a new report out today says that the retail giant will use HTC to help it make its upcoming devices. Three different smartphones are said to be in development, according to The Financial Times article, but one of the HTC-made devices is apparently close to completion.

Both Amazon and HTC declined to comment on the rumors to The Financial Times, but chief of marketing Ben Ho told the paper that "We have been very focused on building our own brand, but we have also been very open to co-branding and collaborating with carriers and other technology brands.”

LG makes Nexus phones for Google.
HTC will make kindlePhone (kPhone) for Amazon.

Both Google and Amazon are in the "break-even" on hardware, make money on "services" types of company. Same as Xiaomi in China.

If HTC did decide to partner with Amazon, it would mark a return for the company to its roots as a contract manufacturer for high-profile devices

HTC has spent the last several years expanding its own band but has run into trouble as oxygen in the Android ecosystem has been sucked up by Samsung electronics and its Galaxy line. HTC has also faced competition at the lower end of the market from Chinese handset makers and others.

Example:

HTC makes a high end specs kPhone for $210. Sell it to Amazon for $250. $40 profits per phone.

Amazon sells it at "break-even" at $299. ($49 to cover the cost of marketing, storage, shipping, warehouse, returns, customer service, warranty etc...). Amazon makes money from service.

HTC: win ($40 profits per handset)
Amazon: win (money from services)
customer: win (high end unlocked device at $299)

Amazon can just sell this device on their website (similar to Xiaomi and Google) cutting the physical retail mark-up. See the price of the 16GB Nexus 4 on Google Play ($349) vs. on a T-Mobile store ($499). $150 mark-up.

 

[ucfgrad93]

Am I the only one tired of hearing about the mythical Amazon smartphone? I swear, I'll see a unicorn, Big Foot, the Loch Ness Monster before I ever see an Amazon phone.

 

[EbookReader]

http://www.ft.com/intl/cms/s/0/8751175e-35ab-11e3-b539-00144feab7de.html#axzz2hrZGnntC

By tapping HTC to help design the phones, Amazon is acting much like Google, which has partnered with brands such as Asus and LG to develop its own Nexus line of tablets and phones.

Selling smartphones could help Amazon foster greater consumer loyalty as people increasingly shop via phones and tablets. Apple and Google, which now dominate the smartphone market, both have competing stores to sell books and music.

analysts and people familiar with HTC say that its partnership with Amazon could be a good strategy, as it allows HTC to focus on its relative strength in product design.

 

[MRU]

God I hope for HTC this isn't a disaster like the HTC First.

 

[EbookReader]

God I hope for HTC this isn't a disaster like the HTC First.

HTC First is a Facebook phone. That should tell you all you need to know why it was a failure.

The kindlephone from Amazon (built by HTC) will be along the line of the Nexus 4 or Nexus 5. Or Xiaomi flagship phones.

unlocked High Specs smartphones at break-even prices. Xiaomi is on track to sell 20 millions of their smartphones in 2013. And the Nexus 5 could sell 10 millions over its lifetime. The Nexus 4 sold around 4 millions.

 

[JaySoul]

Amazon should just buy HTC out to be honest.

 

[Razeus]

That Amazon UI is horrendous.