Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Will You Buy a Kindle Phone?

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now (Nasdaq: AMZN  ) has barely stepped into the tablet market, and before the e-tail king even had a chance to take off its coat, speculation has now turned to the prospect of Amazon entering the smartphone ring.

Citing the customarily ambiguous "channel checks," Citigroup analyst Mark Mahaney is igniting the idea of a Kindle Phone. Mahaney attributes the channel checks to Citi's Taipei-based hardware research analyst, Kevin Chang, and pegs a time frame of Q4 2012 for a possible introduction in time for next year's holidays.

Mahaney believes that Amazon has tapped Foxconn as the manufacturer, who also makes many of Apple's (Nasdaq: AAPL  ) iDevices and is also rumored to make the next Kindle Fire. He also thinks there's a good chance that Amazon will sell it close to cost, in the ballpark of $150 to $170. That would be a similar strategy to that used for the Kindle Fire, with estimates that the Fire costs between $210 and $250, resulting in an upfront loss of between $10 and $50.

Can Amazon push its way into an already incredibly crowded and saturated smartphone market?

There have been rumors that Amazon may be at the bidding table to take webOS off Hewlett-Packard's (NYSE: HPQ  ) hands, but that strikes me as a particularly terrible idea with webOS's track record. The Fire runs Google (Nasdaq: GOOG  ) Android, making it a natural step to put the OS on a Kindle Phone. Mahaney even notes that Amazon may need to pay Microsoft (Nasdaq: MSFT  ) an "OS royalty," which would bolster Mr. Softy's list.

The prospect of a Kindle Phone makes a lot of sense, especially if Amazon plans to undercut the market in the same way and sell the device remotely close to its cost and make it up afterward in content sales. The company has already been building an Android ecosystem and the Fire is drawing in developer interest that rivals initial developer interest in the iPad, according to a recent survey by Appcelerator.

This rumor has some legs to stand on, as long as webOS stays out of the picture.

What do you think? Would you buy a Kindle Phone? Share your thoughts in the comments box below. Don't forget to add to your Watchlist while you're at it.

Fool contributor Evan Niu owns shares of Apple and, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Google, Microsoft, Apple, and Citigroup. Motley Fool newsletter services have recommended buying shares of Google, Microsoft,, and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple and creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 18, 2011, at 12:22 PM, FriedBrain wrote:

    I don't buy it ... saving $30 - $50 for a device that's got a smaller footprint and won't display content as well as a Fire? I understand the idea of the eco-system (and leveraging Amazon's digital content locker), but Apple's idea of starting with the phone (the device people want/need) to build a set of a capabilities that scream for a larger format made sense. Amazon's move to a smaller format at this point of the game ... not so much.

    I just don't see the reward being that big.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1592026, ~/Articles/ArticleHandler.aspx, 10/24/2016 3:00:39 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,230.19 84.48 0.47%
S&P 500 2,150.70 9.54 0.45%
NASD 5,304.60 47.20 0.90%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 2:45 PM
AMZN $836.03 Up +17.04 +2.08% CAPS Rating: ****
AAPL $117.48 Up +0.88 +0.75%
Apple CAPS Rating: ****
GOOGL $836.45 Up +12.39 +1.50%
Alphabet (A shares… CAPS Rating: *****
HPQ $13.90 Up +0.10 +0.69%
HP CAPS Rating: ***
MSFT $60.81 Up +1.15 +1.93%
Microsoft CAPS Rating: ****