Amazon has been the cheerleader for the model of selling tablets at low cost ‘ just over break-even for the firm, under $199 for the consumer ‘ in order to drive content sales. Ever since it got into devices with the original Kindle ereader, there has been speculation that the company would take the logical next step and offer a free device, perhaps tied to its Prime subscription services, cellco-style.
However, the retailer has denied the most recent spate of those rumors, claiming it is not planning a free device and, what’s more, it will not launch the long anticipated smartphone in 2013.
The company issued an official statement on Sunday, in response to reports that it was finalizing deals with its white label device makers to offer a 100%-subsidized handset. The purported smartphone would mainly be sold directly, like the Kindle Fire and Kindle ranges, rather than through operators, which might pave the way to Amazon becoming an MVNO too (embedded cellular wireless without fees was another pioneering Amazon move, with the first Kindles).
The statement said: “We have no plans to offer a phone this year, and if we were to launch a phone in the future, it would not be free.’