Amazon could get into the smartphone business next year, according to a Wall Street analyst.
Mark Mahaney, an analyst with Citigroup Investment Research, wrote that his firm believes Amazon will launch a smartphone in the fourth quarter of 2012, All Things Digital reported, quoting the analyst.
"Based on our supply chain check, we believe FIH is now jointly developing the phone with Amazon," the report quoted Mahaney. "However, we believe that Amazon will pay NRE (non-recurring engineering fees) to FIH but the device and multiple components will actually be manufactured by Hon Hai's TMS business group (the same business group that makes Amazon's E-reader and the 8.9" Amazon tablet)."
FIH stands for Foxconn, the Chinese manufacturer that makes the iPhone for Apple, according to The Telegraph.
Mahaney and his team reportedly believe the phone may cost $150 to $170 to build. "For a normal brand like HTC," All Things Digital quoted Mahaney, "they need to price the product at US$243 to make 30% gross margin."
