Amazon may be on track to launch its own Amazon smartphone in the fourth quarter of next year, Citigroup believes so as indicated in a recent research note it released.
The news comes via Reuters which says that Citi said “it believes the online retail giant is now jointly developing the phone with the world’s top contract cellphone maker Foxconn International Holdings Ltd.”
The research note from Citi which talks about the Amazon smartphone is dated November 17, Reuters says.
It’s important to note that Foxconn also manufactures the popular iPhone of Apple, an Amazon rival currently suing the internet commerce powerhouse.
Citi reportedly said in the note that “With the clear success of the Kindle e-Reader over the past 3 years, and Kindle Fire possibly succeeding in the low-priced tablet market, we view this as the next logical step for Amazon.”
Amazon just recently announced and released the Kindle Fire, a tablet expected to be a possible successful rival to the ubiquitous Apple iPad.
According to Reuters, Citi anticipates that Amazon will pay one-time engineering fees to Foxconn but Hon Hai Precision Industry Co – another supplier in Apple’s supply chain and the bigger company which uses the Foxconn trade name – will actually make the Amazon smartphone and some of its components.