In a previously unreported move, the online retailer and
Kindle maker is considering introducing its long-planned
smartphone for free to consumers, according to people familiar with
Amazon’s effort. One person familiar with the effort said the company has talked to wireless carriers about offering its phones, though it is expected to offer them directly to consumers through its website. A launch date also is unclear. Like its Kindle Fire
tablet, an Amazon smartphone would be powered by a “forked” version of
Android, which means that it uses the open-sourced version of
Google’s mobile-operating system but doesn’t preload any
Google apps.Amazon would have to find a way to make up for the cost of manufacturing — on average, $200 per smartphone — by steering device owners to shop for goods through Amazon.com and to purchase digital media and apps through its app store. It also sells digital ads and could show them to device owners, something it already does on the lowest-priced model of the Kindle Fire tablet.