Computers

Amazon to join the smartphone market in Q2 2014; own brand with 6 cameras

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Amazon, the world’s largest online retailer, will launch its own brand of smartphone with six (6) cameras to be released in the 2nd quarter of the year, rumors said.

The buzz spread and gained strength when the famous analyst Ming-Chi Kuo of KGI Securities, known for predictions on Apple product plans, wrote:

?We predict Amazon (US) will launch its own brand smartphone in 3-6 months, using the same hardware strategy as used for its e-reader and tablet. The supply chain will start stocking up materials in Q2 2014 for production. We estimate required components will amount to 700k-1.2mn units, and assembly to 300-600k units. Related suppliers will start to see benefits in 2014.?

Moreover, Kuo said that Amazon?s next big project would be a smartphone characterized by the presence of six cameras. ?Like other smartphones, the front and rear cameras will be used for video calling and taking pictures, while the rest of cameras will be used in for gesture control.?

?The key feature of the smartphone, we believe, will be the six cameras. Aside from the main camera, which is used to take pictures, and the sub camera, used for video conferencing (these are both found in all smartphones), we think the other four cameras will be used for gesture control, allowing users to operate the smartphone without touching the touch panel,? Kuo wrote.

Prediction says, the alleged smartphone would be a 4.7-inch screen with 300-320ppi, powered by Qualcomm Snapdragon 801 processor, with 13-megapixel rear camera and a 2000 or 2400 mAh battery.

?Given the highly competitive smartphone market, Amazon will have to provide users with a unique experience to differentiate its phone from other brands. It would do this by integrating the smartphone with its own services such as e-commerce. If Amazon?s smartphone is a hit, we would expect shipments to grow significantly due to the hardware features and business model. At the current stage, when market acceptance is unclear, we preliminarily forecast shipments of 300-600k units in 2Q14 and 2-3mn units in 2014,? Kuo continued.

Furthermore, the rumored smartphone is said to have Fire OS, the ?forked? version of Android, heavily customized by Amazon as its operating system. It is also the OS used in Kindle Fire tablet.

?While Amazon?s smartphone is at the experimental stage, we think its hardware features and business model may have the potential to garner a positive market reaction, fueling robust sales growth. If this is the case, we believe the shares of top beneficiaries Sunnic and Primax will outperform accordingly,? Kuo concluded.

Amazon.com, the company that also produces consumer electronics ? like the Amazon Kindle e-book reader and the Kindle Fire tablet computer? is a major provider of cloud computing services, started as an online bookstore, that soon developed and diversified, selling DVDs, VHSs, CDs, video and MP3 downloads/streaming, software, video games, electronics, apparel, furniture, food, toys, and jewelry.

Jeff Bezos, Chairman, President and CEO of Amazon, incorporated the company in July 1994 and went online as Amazon.com in 1995.

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