Report: Amazon's Talking to HTC About Making a Smartphone

By Mario Aguilar on at

Two different sources are reporting that Amazon and HTC have been in talks to produce the online retailer's long-rumoured line of smartphones. If true, the news is significant because it means that Amazon would be sourcing its hardware from a third-party manufacturer for first time. From the other perspective, teaming up with Amazon could save the company from haemorrhaging any more money.

As Jessica Lessin points out, Amazon has an incentive to team up with HTC for its rumoured forthcoming smartphones. Despite some measure of mobile connectivity, Amazon's Kindle e-readers and tablets have always been primarily Wi-Fi devices. HTC has existing relationships with networks that could not only help get the phone picked up—but could could also provide a huge network of retail outlets that could help the company move units.

[FT and Jessica Lessin]