There are rumors of an Amazon smartphone, so it seems Amazon think they have something new to offer in smartphones. What might that be?
Are they going to offer even cheaper or better Android phones? Probably not. A new mobile OS and an Amazon app store with apps for Amazon devices only, hooked up to their other business? Maybe. I think there's room for several mobile ecosystems. It has to be done well enough though. What's needed is great devices, an ocean of apps and good marketing. But has Amazon made enough mistakes to be able to succeed? Probably not. If I were Amazon, I would go for the tablets, because they're in the book business.
I'll finish by noting that iTunes is now available in Asia! Japan, Australia and New Zealand used to be the only Asian countries with iTunes. The new countries/territories are Hong Kong, Singapore, Malaysia, Thailand, Philippines, Brunei, Cambodia, Laos, Macau, Taiwan, Sri Lanka, Vietnam. However, China is still not included.