It’s good policy to take analyst predictions with a big lump of salt, but a new projection from Citi Research jives with the seeming direction of the mobile market. According to the report, Amazon is actively preparing to design a sell an Android phone . However, the report goes on to state that it isn’t expected to arrive until late 2012.
Amazon will reportedly work with several companies involved in Kindle production to design and manufacture the device, which will use Qualcomm radios and TI OMAP processors. The report calls out OMAP4 as the chip of choice, but in a year’s time, OMAP4 will be positively ancient. The report could not confirm Android as the OS, but we have to assume it would be Amazon's specific flavor of Android. Amazon is rumored to be looking at a $150-170 build cost, which is in line with other vendors.
The place Amazon could make an impact is in consumer pricing. If the company is willing to lose money on each device, it could be a big seller that gets users into its ecosystem. Amazon would make up the loss on the back end, just like on the Kindle Fire. What say you? Real, or bunk?