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(image source: cnet) by elizabeth hagedorn amazon may soon offer its long-awaited smartphonefor the very low price of free. former wall street journal reporters jessicalessin and amir efrati first reported the move — suggesting the online retailer plansto offer the complimentary phones directly on amazon.com, no wireless contract necessary.(via jessicalessin.com) as the verge points out, this strategy isn'tall that new for the tech giant. amazon's kindle fire tablets already are sold at lowprices as a way of getting users to buy more from the company's app store.
but are the rumors too good to be true? asmany have pointed out, "free" may be a somewhat deceptive term, as the tech giant will needto make up its costs somehow. one way could be requiring new smartphonecustomers to purchase a membership to amazon prime — its $79 a year free-delivery andcontent services program. it's a similar ploy facebook used to sellits $99 htc phone, which came preloaded with applications from the site. after only a month, facebook slashed the priceto just 99 cents. but even that did little to help slumping sales. (via at&t) a writer at slate says amazon can learn fromfacebook's flop: "unless amazon really is
going to just start shipping scot-free phonesuntil it runs out of them, the lesson is that the hardware itself is going to have to holdsome appeal for customers in order to catch on." but if the rumors hold true, amazon's newdevice could come with some pretty impressive hardware. among those rumors, glasses-free3d retina display with full eye tracking technology. (via bloomberg) the launch of a free phone could have competitorsgoogle, microsoft and apple on edge, as all three are trying to trying to stake a claimin the emerging market for cheap phones. apple is expected to debut its first low-cost iphonenext week.
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