Foxconn Allegedly Manufacturing Amazon’s Smartphone Model

Taipei, Dec. 14, 2012 (CENS)--Foxconn International Holdings Ltd., an affiliate of Hon Hai Group, has allegedly manufactured a new smartphone model for Amazon on an exclusive basis, according to industry sources.

Some smartphone parts makers involved in the supply of Amazon’s new smartphone model, which is scheduled to be launched between the second quarter and the third quarter of 2013 at a unit price of US$100-200, said that Foxconn is expected to ship as many as five million units of the new device in the year, given the fact that Amazon has shown ambition to extend its business reach to the fast-growing market after succeeding in diversifying from e-books and readers to tablet PCs to drive its growth.

In fact, Foxconn has reportedly actively scrambled for Amazon’s contract order for the smartphone model earlier, in order to seek a new driver for its handset shipment after witnessing its major customers, such as Nokia, bested by other smartphone vendors.

Now that Foxconn is reportedly working on Amazon’s smartphone, a couple of Taiwanese parts suppliers maintaining close business ties with the electronic contract manufacturer, including J Touch Corp. and Young Fast Optoelectronics Co., Ltd. (touch panel makers), are very likely to share the huge business pie.

Market observers pointed out that Amazon has emerged as one of the most competitive players in the global market for mobile Internet devices, mostly thanks to its low pricing strategy. Backed by its huge loyal consumer base and successful marketing strategies, the U.S. brand is believed to quickly gain its ground in the segment for smartphones in the short term.

In addition to the upcoming budget-priced smartphone model, the U.S. brand has been developing a new-edition Kindle Fire, which is scheduled to land on the market in the third quarter of 2013 and will be allegedly supplied by Quanta Computer Inc. and Compal Electronics Inc.