Amazon and HTC team up to work on a new smartphone. These two companies are reportedly on the final stage of the development of the new device.
According to sources of the Financial Times, one of the three devices is in the final stages of development. However another source said that it is not definite yet whether it will be released. Amazon had modified timelines for other product launches before.
Speculations about Amazon entering the smartphone industry have gone around for two years now. Amazon has not confirmed any of the rumors and said that they have "no plans to offer a phone this year." Latest rumor was it is planning to sell a free smartphone.
If Amazon does have plans to release a smartphone, it will most likely be released by 2014. Moreover, offering its own brand of smartphone will allow Amazon to encourage brand loyalty in the midst of the growing number of people doing electronic transactions like shopping using their mobile phone and tablets.
HTC also did not comment about the joint venture but said that it is constantly open-minded about partnering with other companies to pursue its goals.
HTC Marketing Chief Ben Ho, "We have been very focused on building our own brand, but we have also been very open to co-branding and collaborating with carriers and other technology brands."
It is helpful for both companies to tap into each other's strength. Amazon could benefit from the innovative phone design by HTC while HTC could take advantage of the retail and marketing skills of Amazon so that it can focus more on its strength in phone design.
From a third-party point of view, a team up between the Internet retail company and a mobile developer-manufacturer seems like a good move to compete in the highly competitive smartphone market dominated by Apple and Samsung.
