However, there is a lot of speculation and some expert analysts think Amazon will use the opportunity to launch its own smartphone.
Wall Street Journal reported on 11th of July this year that Amazon was already testing a smartphone with its suppliers. Amazon plans did not include such an early launch for its smartphone back then. But if Amazon wants to seriously compete with Apple and Samsung then it needs to bring in a smartphone and an updated tablet on the market. Especially now when Apple could launch iPad mini in September and Google has already launched the Nexus 7 tablet.
Amazon’s Kindle Fire is currently powered by Google Android and sells for $199. Amazon will drop the price for the 7-inch Kindle Fire in order to make room for the new model. Digitimes.com reported back in June that according to sources from the upstream supply chain: “Amazon is expected to release a new 7-inch tablet PC with a screen resolution of 1280 by 800 and a price of US$199, in the third quarter, targeting the higher-end segment, while releasing another 7-inch model with similar specifications as the existing Kindle Fire, featuring a screen resolution of 1024 by 600 and a price of US$149.”