Jessicalessin.com is reporting that Amazon is making a play to offer its much rumoured smartphone for free. For those of you, who are hearing about jessicalessin.com for the first time, it is the temporary site of former WSJ reporter Jessica E. Lessin’s next tech publication.
What is even more interesting that the report notes that Amazon wants the smartphone to be free without even a compulsory wireless plan. In US, telecom operators usually discount the price of devices when consumers sign up for one/ two-year wireless contracts, in the bid to recover the price of the device in longer run.
But, how will this Amazon plan work? If the company really offers a smartphone for free, won’t everyone just start lining up to grab a freebie? So, chances are that there will be some strings attached. One of such strings could be the need of Amazon Prime subscription or the company could give the phone to just its loyal customers, but there are no confirmed or even unconfirmed details right now.
Jessicalessin.com’s report also mentions that Amazon has been talking to wireless operators about such a phone, however it is likely that it will be offering the phone directly from its website, so probably no carrier role in the sales (or just giving out, considering that it is going to be free) of the device. Amazon will however need them for wireless services, as the retail does not own a wireless service of its own and consumer who take Amazon’s free phone would surely like to make calls from it.
“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,” the report adds.
Amazon clearly needs to get a lot of things in order to make this ‘free phone’ plan succeed but if it is indeed able to make this a reality, this will be a huge industry-disruptor.
What is even more interesting that the report notes that Amazon wants the smartphone to be free without even a compulsory wireless plan. In US, telecom operators usually discount the price of devices when consumers sign up for one/ two-year wireless contracts, in the bid to recover the price of the device in longer run.
But, how will this Amazon plan work? If the company really offers a smartphone for free, won’t everyone just start lining up to grab a freebie? So, chances are that there will be some strings attached. One of such strings could be the need of Amazon Prime subscription or the company could give the phone to just its loyal customers, but there are no confirmed or even unconfirmed details right now.
Jessicalessin.com’s report also mentions that Amazon has been talking to wireless operators about such a phone, however it is likely that it will be offering the phone directly from its website, so probably no carrier role in the sales (or just giving out, considering that it is going to be free) of the device. Amazon will however need them for wireless services, as the retail does not own a wireless service of its own and consumer who take Amazon’s free phone would surely like to make calls from it.
“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,” the report adds.
Amazon clearly needs to get a lot of things in order to make this ‘free phone’ plan succeed but if it is indeed able to make this a reality, this will be a huge industry-disruptor.
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