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Why an Amazon Phone Makes Sense … for Amazon

Amazon founder Jeff Bezos
Amazon founder Jeff BezosPhotograph by Spencer Platt/Getty Images

Amazon.com’s entry into the mobile-phone market has been the subject of speculation from a variety of technology mavens and market analysts. A recent report from Bloomberg confirms that Amazon indeed plans to develop an Android-based smartphone in collaboration with Foxconn, the Chinese company that also manufactures Apple’s iPhone.

Amazon’s move into phones makes sense for several reasons. First, as consumers increasingly rely on mobile devices to access online content—a trend that is likely to define the future of online communication and commerce—Amazon can ill afford not to have a presence in this fast-growing market. Amazon’s phone can also benefit from potential synergies with Kindle in terms of software platform and device interface.