Update: Amazon has now said that the phone won’t be launched this year, and it won’t be free. “We have no plans to offer a phone this year, and if we were to launch a phone in the future, it would not be free,” Amazon said in a statement to AllThingsD.
According to Jessica Lessin and Amir Efrati, Amazon is considering making its upcoming, long-rumored smartphone available to consumers free of charge. However, it is unclear what strings are attached to the deal:
There are many unanswered questions about the plan and what strings will be attached for customers. One of them is whether Amazon would require its smartphone owners to pay for services such as Amazon Prime, the company’s loyalty program. But the people familiar with the matter said that Amazon wants the device to be free whether or not people sign up for a new wireless plan at the same time. (Wireless carriers typically discount the price of devices if customers sign up for a one- or two-year wireless contract.)
A launch date for the device is currently unclear. Like with the Kindle Fire tablets, past reports have suggested that the Amazon phone will run on a forked version of Google’s Android operating system.
Earlier this year, reports emerged with claims that Amazon is working on a bevy of products, including a phone with a 3D display, and various audio/media center devices. Amazon’s hardware development division for these products is (like Apple) situated in Cupertino.