Amazon.com Inc. (AMZN) and Apple Inc. (AAPL) have been competing in the ereader and tablet market for over a year now, since the iPad was introduced. On Friday, a report from Bloomberg mentioned that Amazon is now looking to introduce its own smartphone to take on the iPhone and some of the leading Android devices in the market.
A smartphone would give Amazon a wider range of low-priced hardware devices that bolster its strategy of making money from digital books, songs and movies. It would help Chief Executive Officer Jeff Bezos — who made a foray into tablets with the Kindle Fire — carve out a slice of the market for advanced wireless handsets.
Amazon has one of the most popular ereaders out on the market, the Kindle and is also leading the industry with some of its other products, including its cloud services and tablet computer, the Kindle Fire. The report mentions that Amazon is set to acquire a portfolio of patents that would allow the company to take steps in competing directly with some of the top competitors.
The rumored smartphone would likely borrow certain aspects of the Kindle Fire, including features such as purchasing books, magazines, and newspapers from Amazon’s store as well as using Amazon’s Cloud Drive as external storage. Amazon currently operates services that control a considerable portion of the digital content available online. By introducing a smartphone alongside its tablet and pairing with its online content, Amazon could very well present the iPhone with a serious competitor in the smartphone market.
{Via MacRumors}
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