Amazon may be using its new smartphone as a way to let customers enjoy the benefits of a Prime membership.
Boy Genius Report reports that the smartphone, which is rumored to arrive in stores sometime this summer and feature a 3D interface, could come with a special wireless plan called “Prime Data.”
Details are scant at this point, but BGR’s sources say that the data plan could be exclusive to AT&T and mimic AT&T’s “Sponsored Data” plan, which allows customers to use certain apps and services without affecting their monthly data cap. Instead, the companies behind those apps and services cover the data usage costs.
With Amazon’s smartphone, this model could be used to offer free Prime content, like TV shows and movies on Prime Instant Video. Or, perhaps Amazon could offer a few free months of Prime services with its data plan.
Whatever the company decides to do with “Prime Data,” it’s in line with Amazon’s strategy to offer hardware at low prices in order to attract more customers and eventually have them purchase content via Amazon.
Amazon recently increased its Prime membership by $20 to $99/year. Amazon Prime members receive free two-day shipping on selected products, as well as other benefits such as access to Prime Instant Video, and the ability to borrow from a selected library of e-books on Kindle devices.
Amazon beat Wall Street expectations on Thursday, reporting $19.74 billion in revenue during the first quarter of 2014, up nearly 23 percent from almost $16.1 billion in the year-ago quarter. Amazon’s stock, however, is struggling today and is down more than nine percent as of publish time.
