This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Amazon Reportedly Developing Smartphones

NEW YORK ( TheStreet) -- First it was e-book readers. Then tablets. And soon, possibly smartphones. Amazon (AMZN - Get Report) is reportedly working on at least one and possibly two smartphones of its own.

According to one report Amazon is working on two handsets one of which is a value model offering basic software similar to the company's Kindle Fire tablets. Those tablets run on Amazon's Fire operating system - a modified version of Google's (GOOG - Get Report) Android OS.

Amazon shares were declining 1.06% to $317.12 mid-morning in New York.

The more expensive flagship phone is said to have an interesting "three-dimensional" interface. The project codenamed "Smith" is described:

"The screen itself is not 3D, but the front of the phone has 4 cameras placed on each corner of the phone, this is to track the user's eyes/head and move the UI to give the impression of 3D. Similar to what (Apple's (AAPL - Get Report) ) iOS 7 is achieving simply by using the phone's accelerometer. The advantage being that it's not based on how the phone moves, but how the head moves."

Another feature for the premium model is reportedly "image recognition". It will allow users to aim the phone's camera at any object or product and try to find it for sale in any of Amazon's online shopping stores.

Both features would set the Amazon smartphone apart from the rest of the current crowd. The company has stressed innovation and value for its e-readers and tablets while keeping its customers focused on purchasing goods and services from all of its stores.

Yesterday, Amazon announced its new line of Kindle tablets. The new models range from the $139 Kindle Fire to the top-of-the-line Fire HDX 8.9 retailing for $379.

Amazon's corporate policy is not to release actual sales numbers. That including its electronic products business. But last month Morgan Stanley took a stab at it estimating that Amazon will be selling $4.5 billion worth of Paperwhite e-readers and Kindle tablets this year - an increase of 26 percent over last year's results.

Even without taking the possibility of new smartphone products into consideration Morgan Stanley (MS - Get Report) predicts slightly slower growth for Amazon products in the next two years - $5 billion next year and $5.5 billion in 2015.

Those predictions do not include sales of Amazon''s digital content including books, games and videos. It is estimated that portion of the business will bring in $3.8 billion this year and $5.7 billion in 2014 at which point content will surpass device sales.

Amazon has nothing official to say about the possibility of selling its own smartphones. Industry insiders believe we could see an Amazon "value" handset before the end of this year and the premium "3D" model shortly thereafter.

<P/>--Written by Gary Krakow in New York.

<P/>>To submit a news tip, send an email to tips@thestreet.com</a>.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $121.30 0.00%
AMZN $536.15 0.00%
GOOG $625.61 0.00%
MS $38.84 0.00%
FB $94.01 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs