Amazon is ahead of the game by a wide margin. It is reportedly planning to offer a free smartphone free and this fact is unpalatable for Apple.
Amazon wants to show that price is not a cause of hindrance. In fact, that is the exact reason why it is giving away its smart phone for free. However, that does not necessarily mean that a subscription is not in the works. That may be very much of a possibility. In order to pull off this plan, Amazon will have to hobnob with both manufacturers and carriers. Like Amazon’s Kindle Fire, this venture too could prove to be a success. Now who doesn’t want such a wonderful price tag as zero dollars? But who would take up the gauntlet and build a smart phone that costs nothing for Amazon. Many Chinese companies are eyeing the deal though it has not been finalized yet.
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Jessica Lessin states in her blog that Amazon "has talked to wireless carriers about offering its phones, though it is expected to offer them directly to consumers through its website. A launch date also is unclear. The free strategy isn’t set in stone and depends on several factors, including Amazon’s ability to work out financial arrangements with hardware partners, said one of the people who is familiar with Amazon’s smartphone effort. This person and others expressed skepticism about Amazon’s ability to pull off a free device."
Meanwhile, Apple, Google and Microsoft are getting a serious case of the heebie-jeebies. As they look on at the competition they will have to shape up. With Amazon producing its very own smart phone, things are going to get difficult for others who charge much more than the free offer of the Big “A”. Oftentimes, when a strategy of challenging the existing status quo makes its way into the open there is panic among the pre-existing players entrenched in their ways. A similar thing has occurred with the rivals of Amazon. They have been caught off guard.