Amazon's phone plans

Amazon has been looking to get into phones for some time. If it does release its own phone, it could well be an Apple killer.

It is interesting therefore to read Nadia Damouni at Reuters telling us that Amazon was seriously looking at buying Blackberry maker Research in Motion, a company with earnings and a share price that is heading south.

In the end, Amazon decided not to go ahead with the takeover, which was probably a smart move but Amazon is definitely interested. Damouni reports: "Amazon hired an investment bank this summer to review a potential merger with RIM, but it did not make a formal offer, said one of the sources. It is not clear whether informal discussions between Amazon and RIM ever led to specific price talk, or who else had approached RIM about a takeover."

RIM and Amazon are still talking about ways to expand their ties, according to Reuters. This could include Amazon's catalogue becoming available to BlackBerry use.

There has been all sorts of speculation of late that Amazon is looking at getting into the phone market. Amazon is the only company with the depth and infrastructure that could challenge Apple. As I point out in my blog entry here, the great advantage that Amazon has over Apple is that it knows exactly what we have purchased and so it can build close connections with its customers, much closer than what Apple could achieve.

It's probably only a matter of time before Amazon gets into the phone market. And when it does, all bets will be off.

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