One of the biggest hassles of covering the online technology market is that you get to run into all sorts of rumors, innuendos and outright BS. While this might be fun when talking about celebrities, it’s not a cake walk when you’re dealing with technology companies especially a huge one like Amazon. Amazon is no joke. It started in Jeff Bezos’ garage and hasn’t looked back ever since. The company continues to grow by leaps and bounds and Amazon isn’t just resting its laurels on its eCommerce victories. It is the largest online retailer in the world and it’s quickly beginning to expand.
One of its earliest ventures is to go into web services, in other words, cloud computing. Recently, Amazon has moved into the tablet market with Kindle and Kindle Fire. Well, it looks like Amazon is doubling down on its hardware gambit and looking into the smartphone space. You might be thinking: Smartphones? Amazon? Well, the truth is smartphones are still expanding and they are great launching pads to other devices like tablets. Moreover, as smartphones become cheaper and cheaper, more and more people are going to be carrying smartphones and this means you are establishing a distributed network of possible buyers and at worse, mobile promoters.
Whichever company is able to decrease the price of these gadgets low enough can reap a massive windfall once consumer pools are transformed into walking and talking mobile billboards. Jeff Bezos is not shy about taking massive gambles, after all he is the man that paid two hundred fifty million dollars for The Washington Post and according to certain reports, Amazon is slated to give away free smartphones. This is a major leap for Amazon because smartphones, as you can well imagine, are not free. Even smartphones made in China are having a tough time making a profit at the hundred fifty dollar mark so dropping the price of smartphones to zero is quite a marketing, financing and technological feat.
Considering Amazon’s background and resources, we would not be surprised if this Seattle-based company is able to pull it off. Chances are these free smartphone offer is probably going to be linked with a wireless carrier like most smartphone programs are. What would make this very interesting is the specific Amazon strategy of turning free smartphones into profit. That would be something that we’re going to keep an eye on.