Kindle Fire Popularity Seems To Spur Interest In Kindle Phone

It’s safe to say that the Kindle Fire has made an impression.  Tablet prices are dropping across the board, some major hardware developers seem to be reconsidering their desire to enter the fray, and Amazon has increased their expected sales numbers on the order of millions of units beyond what was originally planned for the 2011 holiday season.  Not only does this spell good news for Amazon’s first non-eReader (or maybe post-eReader?  Hard to say precisely where to draw the line since it technically can show you books), it means that the hardware line is sure to continue and expand as time goes on.

There is some contention at the moment about exactly which Kindle Fire followup we can expect to see next.  Some are certain that it will end up being a 10.1″ direct competitor for the iPad while a newer contingent citing supposedly inside information from the production chain has started indicating somewhere around 9″ as the next step.  Regardless of where you would place your bet, one frequent point of speculation is the potential for a Kindle Phone.

There has been speculation before that Amazon was interested in entering into cellular devices, but until recently that seemed doomed to be nothing but a rumor.  This past week, though, Citigroup analyst Mark Mahoney noted that certain checks they have done indicate that development for an Amazon Phone is already underway with delivery expected in 4th quarter 2012.

To be honest, it is hard to know what to expect moving forward.  While this seems to be fairly detailed information, it feels like there is little in it for Amazon in the end.  The tablet makes sense since Amazon is able to completely control the data end of things and sell at near cost, undercutting the competition.  In a cellular market closely controlled by carriers, there might well be less room for such tactics.  When consumers are already used to getting hardware for less than half of its suggested retail cost, budget options aren’t as shocking.

What I could definitely envision, however, is a Kindle Fire-like device with a smaller screen and optional 3G coverage along the lines of what is available for the iPad.  It would work marketed as an iPod Touch competitor but still have the hardware necessary to function as a communication device should the desire arise.  Even without the 3G, relying on WiFi availability, such a thing would make a big splash at the right price.

As much as it might be a difficult thing to enter into the smartphone marketplace at this time, would Amazon be willing to pass up a chance to grab hold of what is only going to continue to be an expanding market?  The Kindle Fire has demonstrated for them the potential of Android devices and the fact that they already have an Android fork fully developed and customized to fully integrate into their sales systems means that much of the work is already done.  Maybe it’s just optimism, but I think the Kindle Phone is definitely on its way.