Amazon Fire Phone

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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.
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If they are going with android as a base, I don't think they'll be able to get away with what they did on the Kindle Fires. I can put up with the reduced market selection on my tablet because that wasn't what I bought it for, on a phone though, I couldn't do without the Google apps (maps, talk, voice, etc) and the full market.
 
Well they can actually. Since they will offer for it for free, they can't just load Google Play Store(Google Play Books, Google Play Music) directly. To offset the costs, they would obviously want it to be heavily customised with their own services and their partner's content. Though I guess you can always use some workarounds to get Google Play Store back just like Kindle Fire.
 
http://www.theverge.com/2014/4/15/5616820/amazon-smartphone-revealed-in-leaked-photos

Interestingly, the shots reveal a total of five front-facing cameras. One will presumably used for pictures, video chat, and interacting with Amazon customer support via the company's signature Mayday service. But the four cameras located at each corner are more interesting, as they're the secret behind Amazon's "3D" experience.
Amazon2
Rather than require users to wear 3D glasses or include specialized display technology as Nintendo does with the 3DS, Amazon's phone reportedly relies on tracking technology to pull off its glasses-free 3D effect. Exactly what those cameras are tracking remains a subject of debate; BGR claims they follow the position of a user's face and eyes to simulate a 3D perspective as the phone is moved around. But earlier today, TechCrunch reported that there's no eye tracking involved. The two sites also disagree on how much focus Amazon will place on this feature; BGR claims Amazon is trying to showcase the technology at every opportunity — starting with parallax effects on the lock screen — while TechCrunch says 3D will be "very limited out of the box."
Both reports agree with the timeframe previously revealed by The Wall Street Journal: Amazon will announce the device by June.
5 front cameras to create 3D effect?
 
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