Amazon's Smartphone Is Rumored to Be Delayed

NEW YORK (TheStreet) -- Amazon (AMZN) is working on as many ways as possible to get the consumer to buy stuff from it. One of those ways, however, may have hit a snag.

Digitimes cited sources from within Amazon's supply chain that the company's rumored smartphone may have hit a setback. Plans were for Amazon to release the phone in the second quarter of this year, but Amazon's manufacturing partner, Foxconn International Holdings, has hit some snags.

The issues stem as the phone is still going through its engineering verification test (EVT) period, due in large part to issues related to its mobile platform.

Amazon is already selling multiple pieces of hardware, including the popular Kindle e-reader, as well as the Kindle Fire tablets. TheStreet reviewed Amazon's latest Kindle Fire tablet, the Kindle Fire HD in September 2012.

By expanding its hardware offerings, Amazon is going up against the likes of Apple (AAPL), Google (GOOG) and Samsung in the battle for consumer's mind share. Amazon is taking a different approach than Apple and Samsung as it relates to hardware. CEO Jeff Bezos has said in the past Amazon breaks even on the devices, making money only when a customer uses it to purchase something.

"Basically, we sell the hardware at our cost, so it is break even on the hardware," Bezos said in an interview with the BBC last year. "We're not trying to make money on the hardware."

Conversely, Apple and Samsung account for the majority of profits in the mobile device industry, with the iPhone and iPad, and Samsung's Galaxy line of smartphones and tablets.

Rumors of an Amazon smartphone were first heard last year.

An Amazon spokesman could not be immediately reached for comment for this story.

Shares of Amazon fell 0.92% to $271.66 in early Monday trading.

--Written by Chris Ciaccia in New York

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