Is Amazon's phone a high-end hardware play?

by anonymous on 2013-11-16 17:39:24

Rumors about Amazon's smartphone continue to circulate. According to sources from AppleInsider, Amazon is collaborating with Asian camera module manufacturers to develop advanced sensors that support 3D gestures and eye-tracking, intended for use in a smartphone set to be released next year.

It is reported that this long-rumored smartphone will feature a series of sensors offering an entirely new interaction method: it includes six compact camera modules, four of which are VGA cameras located at the corners of the phone, enabling support for 3D gestures and eye-tracking movement. In addition, the Amazon phone will be equipped with a 13-megapixel rear camera and a 2-megapixel front-facing camera.

Furthermore, AppleInsider’s information indicates that this high-end smartphone will come with a 4.7-inch display and a Qualcomm Snapdragon 800 processor. Just the cost of the cameras alone in this device is as high as $40.

Currently, Amazon is working with three core camera module manufacturers, including Primax, Liteon, and Sunny Optical. Among them, Primax will be the primary component supplier for Amazon's smartphone, providing over 50% of the components.

AppleInsider’s report aligns perfectly with the "Project Smith" plan revealed earlier this month. The previous information showed that Amazon would launch a high-end smartphone with 3D sensors, along with an entry-level device. Mid-month reports indicated that Amazon is collaborating with HTC on smartphone development, and the models being developed may not be limited to just one.

Combining software and hardware is a crucial approach to unify user experience; strengthening control over hardware helps form a virtuous ecosystem. For Amazon, producing a smartphone not only diversifies its content carriers but may also boost services outside content consumption, such as retail business. In summary, making smartphones aligns very well with Amazon's business logic.

Previously, we analyzed that Amazon entering the smartphone market would likely choose either a hardware sales model or a content-subsidized hardware model. The former is represented by Apple, emphasizing hardware manufacturing capabilities, while the latter is exemplified by Kindle Fire, where hardware serves content and revenue comes from content. The general consensus is that Amazon's smartphone will continue the commercial logic of Kindle Fire, but judging from current information, the application of cutting-edge technologies like 3D gestures and eye-tracking suggests Amazon might aim to enhance product competitiveness through new interaction methods on smartphones, directly competing with rivals like Apple and Samsung in hardware.

This will be a path distinctly different from Kindle Fire, whether adopting a deeply customized system or achieving differentiation in hardware, these are questions Amazon must address.

Whether in terms of competitive landscape or business model, the smartphone sector differs greatly from the tablet computer market, and Amazon, without any prior experience, faces considerable challenges in securing a share of the market.