An unnamed spokesman for Amazon has come forward and denied the rumors that they had plans to give away a free phone sometime in the near future. Speaking to the folks over at Jessica Lessin, who initially reported that Amazon was planning to produce and distribute a free smartphone this year, the company has denied that they even have plans to release a phone at all this year, but if they did release one in the future it "would not be free."
We can't say we're surprised. Even Amazon would have a hard time eating the subsidy on a completely free phone off-contract.
Will Amazon ever offer a smartphone based on an Android fork? Probably. But we know not to expect it any time soon.
Source: Jessica Lessin