Following the successful launch of the Kindle Fire, Citigroup claims that Amazon may be preparing to take on the iPhone by releasing their own “Kindle Phone” in 2012.
AllThingsD reports on Citigroup’s comments that, based on supply checks, the firm believes that Amazon is working on just such a product, and has already begun making component and manufacturing arrangements.
Based on our supply chain channel checks in Asia, […] we believe an Amazon Smartphone will be launched in 4Q12. Based on our supply chain check, we believe FIH is now jointly developing the phone with Amazon.
Amazon is certainly not the first company to try to make an “iPhone killer,” but considering Amazon’s content offerings and other advantages, coupled with the success of the Kindle Fire, which may detract from iPad sales even without being a direct competitor, Amazon may have a better chance than most.
The alleged device will likely be based on a similar custom build of Android as used by the Kindle Fire, and will likely be targeted at the lower end of the smartphone market.
