With the cloud-based service, developers can finally allow their apps to send updates and other information to individual Kindle devices. While this sort of centralized notification system is already built into Android (and iOS), it’s so far been noticeably absent from Amazon’s custom fork of Google’s operating system.

One of the most significant components of the service is that it doesn’t have to ping servers constantly in order to get updates. Not only is this much better for a device’s battery life, but it cuts down on data transmission as well. These are both pivotal features in mobile devices, which is why the service will be an indispensable component of any future Kindle smartphone. (And it’s good news for the current Kindle tablets, too.)

Developers should be happy with Amazon Device Messaging as well, because it can help make their Kindle apps as robust as those on other platforms.

Photo: Jennifer Van Grove/VentureBeat

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July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

Once again, there’s word that Amazon is working on a smartphone, this time from Bloomberg. And given the success of the Kindle Fire so far, which has been the only Android tablet worth buying since its debut (the Nexus 7 now holds that title), it’s not surprising to think Amazon would want to get into the smartphone arena as well.

But I can’t imagine Amazon would simply spit out a smartphone without any further innovation.

Considering it’s already one of the best sources for smartphone deals on the web, I think it’s just a matter of time before Amazon starts reselling wireless data services on its own as well. Even without its own phone, reselling wireless service would make Amazon the one-stop shop for practically any mobile device. And if it’s prepaid, the service would be particularly enticing for tablet users, or anyone who doesn’t want to sign up for yet another cellular contract.

Offering prepaid cellular service wouldn’t be a huge stretch for Amazon. The company has offered its “WhisperNet” service since the very first Kindle, which originally used Sprint’s EVDO network to offer anytime data connectivity to its e-readers. Now WhisperNet is running on AT&T’s 3G network.

Amazon has proven itself adept at being a step ahead of the competition with the Kindle, Kindle Fire, and its ubiquitous cloud computing services. Offering its own wireless service would definitely give it a leg up on practically all other mobile device manufacturers — even Apple — which still have to deal with traditional carriers.

According to the Bloomberg report, Amazon is said to be working with Foxconn (which also manufacturers the iPhone and iPad) on the phone. Just like the Kindle Fire, I’d expect Amazon to power the phone with a tweaked version of Android. The company has also been buying up wireless patents to protect itself from the wave of patent litigation sweeping the mobile market.

“My guess is that Amazon will indeed come out with a smart phone, but it will be much like Fire – tied to Amazon content and services, and may even include an e-wallet for purchasing from Amazon,” said Jack Gold, principal analyst at J. Gold Associates. “That is where they made their money, not in the sale of the device itself. So expect it to be aggressively priced (again, like the Fire model).”

“As for reselling wireless, this is a bit more iffy,” Gold added. “Amazon could certainly become an MVNO – there are lots of carriers that would work with them. But I don’t see any real reason for them to do so other than account control. There is not a lot of profit to be made as an MVNO (the carriers make most of the money). If I were Amazon, I’d just provide an unlocked phone and let the buyer pick a SIM for whatever carrier they want. Amazon will make plenty of money on the services, and they won’t have to guess which carrier to provide users that will offer the best service in their location.”

The last time we heard rumors of Amazon building a phone, I wasn’t too excited about the idea. After all, why would Amazon want to jump into the overcrowded Android phone market? But given just how well the Kindle Fire has done, as well as the clear need for a simple prepaid wireless service in the mobile world, an Amazon phone all of a sudden becomes a much more interesting prospect.

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Citigroup analyst Mark Mahaney lays out the case for the Amazon phone in his latest report,  AllThingsD reports.

“Based on our supply chain check, we believe FIH [Foxconn International Holdings] is now jointly developing the phone with Amazon,” Mahaney wrote. Foxconn, it should be noted, is also the premiere device manufacturer for Apple’s mobile devices.

An Amazon phone makes sense for many reasons, especially after the company showed off its ability to tweak Android to its own purposes with the Kindle Fire. It would be another way for Amazon to promote its content ecosystem, and the company is big enough to do something truly innovative in the way cellphone service is offered in the US.

Still, I can’t help but express trepidation about the news. Will Amazon really be able to stand out in the glut of Android phones on the market? And is it wise for the company to offer a phone, which would be a big departure from its more consumption-focused e-readers and tablet?

It made more sense for Amazon to get into tablets: Other than the iPad, no other tablet has truly been successful with consumers (except for perhaps Barnes & Nobles’ Nook Color). The market was wide open for Amazon to step in and offer something inexpensive and easy to use. Android tablets, while increasingly thinner and more powerful, are still weighed down by the platform’s nascent tablet interface and lack of apps optimized for big screens.

With the Kindle Fire, Amazon offered a better Android tablet interface, and it’s already sparking interest from developers. Android needed a standout tablet to convince developers to build slate apps, and it looks like the Kindle Fire will accomplish just that.

When it comes to Android phones, Amazon has less to offer consumers. There are already cheap Android handsets on the market, and while Amazon’s Kindle Fire user interface is well-suited to a tablet, it wouldn’t work as well on a phone. If anything, creating a phone would likely be more for Amazon’s benefit than for consumers’. That doesn’t seem like Amazon’s style, especially when it would be better served to focus on delivering improved mobile shopping experiences for all mobile platforms.