The phone would be free, no wireless contract necessary, and sold on Amazon.com or through wireless carriers, according to unnamed sources.
September 6, 2013 1:18 PM PDT
Amazon CEO Jeff Bezos.
(Credit: Dan Farber)
Amazon is going to give away its long-rumored smartphone for free, according to a report from former Wall Street Journal reporters Amir Efrati and Jessica E. Lessin.
Unnamed sources told the pair that Amazon is considering the offer for "its long-planned smartphone." While it has talked to wireless companies about selling the phones through the carriers' channels, Amazon will probably sell the phone on its site. The company doesn't want to make people sign up for a wireless plan contract for the free phone, a requirement wireless companies typically use to encourage customers to renew their contracts in exchange for a free or discounted phone. It's unclear if Amazon would make its smartphone users sign up for something similar to a carrier's plan, like the Amazon Prime program, which wraps free delivery and content services into a yearly subscription.
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The company is still figuring out if the free model will work for its hardware partners, according to another unnamed source in the report. Although the smartphone rumor has been circulating for some time now, the latest version includes 3D technology.
Giving away the hardware to lure people into its ecosystem is a classic Amazon move. CEO Jeff Bezos has made this clear with the sale of Kindle tablets -- instead of making money off the hardware, Amazon sells hardware to deliver content.
Updated, 1:35 p.m. PT: Added more information and background.
Donna TamDonna Tam is a staff writer for CNET News and a native of San Francisco. She enjoys feasting, merrymaking, checking her Gmail, and reading on her Kindle. Before landing at CNET, she wrote for daily newspapers, including the Oakland Tribune, The Spokesman-Review, and the Eureka Times-Standard.
September 6, 2013 1:18 PM PDT
(Credit: Dan Farber)
Amazon is going to give away its long-rumored smartphone for free, according to a report from former Wall Street Journal reporters Amir Efrati and Jessica E. Lessin.
Unnamed sources told the pair that Amazon is considering the offer for "its long-planned smartphone." While it has talked to wireless companies about selling the phones through the carriers' channels, Amazon will probably sell the phone on its site. The company doesn't want to make people sign up for a wireless plan contract for the free phone, a requirement wireless companies typically use to encourage customers to renew their contracts in exchange for a free or discounted phone. It's unclear if Amazon would make its smartphone users sign up for something similar to a carrier's plan, like the Amazon Prime program, which wraps free delivery and content services into a yearly subscription.
[h=3]Related stories[/h]
- Nokia Lumia 1020 on sale for $199 via Amazon
- Microsoft buys Nokia, next Android named KitKat
- Amazon offically announces all-new Kindle Paperwhite
The company is still figuring out if the free model will work for its hardware partners, according to another unnamed source in the report. Although the smartphone rumor has been circulating for some time now, the latest version includes 3D technology.
Giving away the hardware to lure people into its ecosystem is a classic Amazon move. CEO Jeff Bezos has made this clear with the sale of Kindle tablets -- instead of making money off the hardware, Amazon sells hardware to deliver content.
Updated, 1:35 p.m. PT: Added more information and background.
Donna TamDonna Tam is a staff writer for CNET News and a native of San Francisco. She enjoys feasting, merrymaking, checking her Gmail, and reading on her Kindle. Before landing at CNET, she wrote for daily newspapers, including the Oakland Tribune, The Spokesman-Review, and the Eureka Times-Standard.