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Amazon Kindle Phone: Is it a bad idea?

Amazon may have recently earned the accolade of highest-rated brand in the UK, trumping Google, but there are still some movers and shakers in the technology industry who aren’t sure about some of its decision.

While Amazon’s move into the tablet market with Kindle Fire and forthcoming Kindle Fire 2 have been hugely successful, the idea of a Kindle Phone has been frowned upon by some analysts.

Should Amazon re-think the Kindle Phone?

Analyst Colin Sebastian, of financial firm Bird, argues that Amazon shouldn’t dip its toes into the smartphone pool as the very idea is “fraught with risk”.

He argues that while is it is understandable that it would want to see off competition from Apple and Google by diversifying is product range, it can capitalise on the smartphone market in other ways.

While existing Amazon platforms lend themselves readily to the tablet market, the native apps (such as Maps, Voice Search and email) needed for a smartphone would involve a large cash injection for the company.

“[Amazon] should be able to leverage its e-commerce powerhouse, loyal customer base, traction in digital media, and mobile commerce apps to profit from smartphone growth. If Amazon launches a standalone smartphone, we would likely view this negatively, given the margin pressures and significant competitive issues.”

Not only that, but a survey conducted by the same company earlier this year, found minimal consumer interest for an Amazon phone.

Kindle Phone – the story so far

Rumours of an Amazon Phone launch gained momentum with the news that Windows Phone Director Robert Williams has joined the ranks of Amazon as head of the App Store.

Other speculation points to a screen size of almost phablet proportions, with a display of between 4 and 5 inches.

The Kindle Phone is rumoured to debut later this year, side by side with other launches, which could see it go head-to-head with the iPhone 5.

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