http://gigaom.com/2013/09/03/why-i-think-the-7-2-billion-microsoft-nokia-deal-is-a-terrible-idea/ Amazon will likely duplicate Xiaomi strategy that has brought its wild success in China (20 millions smartphone to be sold in 2013) and $10 billion valuation. This for a company began selling phone less than 2 years ago. http://techcrunch.com/2013/08/28/xiaomi-what-americans-need-to-know/ http://www.theverge.com/2013/8/29/4672668/what-is-xiaomi-china-smartphone-hugo-barra-android European market has been moving toward "no subsidy" model. In the USA, T-Mobile has already switched from subsidy model to a "financing model." http://gigaom.com/2013/03/18/european-carriers-are-moving-away-from-handset-subsidies-analysts-find/ Amazon can use Xiaomi strategy of "no marketing budget, sell it straight from Amazon.com only (no markups from resellers/physical stores). Price it a break-even. A $199 break-even no contract phone made by Amazon will have pretty decent specs. It's just a matter of WHEN not IF when Amazon launches its first phone. kphone perhaps?