http://www.theverge.com/2013/10/15/4841260/htc-rumored-to-make-amazon-phone LG makes Nexus phones for Google. HTC will make kindlePhone (kPhone) for Amazon. Both Google and Amazon are in the "break-even" on hardware, make money on "services" types of company. Same as Xiaomi in China. Example: HTC makes a high end specs kPhone for $210. Sell it to Amazon for $250. $40 profits per phone. Amazon sells it at "break-even" at $299. ($49 to cover the cost of marketing, storage, shipping, warehouse, returns, customer service, warranty etc...). Amazon makes money from service. HTC: win ($40 profits per handset) Amazon: win (money from services) customer: win (high end unlocked device at $299) Amazon can just sell this device on their website (similar to Xiaomi and Google) cutting the physical retail mark-up. See the price of the 16GB Nexus 4 on Google Play ($349) vs. on a T-Mobile store ($499). $150 mark-up.