New Delhi: Days before Apple is scheduled to announce a new, cheaper iPhone, sources are telling former Wall Street Journal reporters Amir Efrati and Jessica Lessin that Amazon could become the first tech giant to offer a smartphone for free, without a service contract.
Wall Street Journal reporter and editor Jessica Lessin said the company is in touch with wireless carriers about offering such a phone.
Analysts say Amazon's efforts are aimed towards grabbing a meaningful market share by tempting customers consumers using iPhones and Galaxy phones - which normally cost about $200 (£127) - to switch to their free version.
However, it is believed that the offer could come with some strings attached.
Amazon could ask people to sign up for services such as Amazon Prime in exchange for the phone. Prime delivers products to customers free-of-charge within two days for a flat annual fee. The facility lets US subscribers stream selected films and TV shows at no extra cost and borrow certain books from its Kindle library for free.
Amazon still needs to seal a deal with a hardware partners to manufacture its phone, which has been rumoured since 2011.
The reports clearly indicate how eager Amazon is to get into the smartphone business.
Indeed an attractive proposition, but the latest Facebook phone fiasco suggests that even the barest financial obligations may be enough to scare a lot of consumers away from a phone.
