The two companies have reasons for partnering up, Amazon is still new to the hardware market and may not have the necessary tools to make an incredible smartphone and HTC needs more products to make money for them.
Amazon has reasons for stepping into the mobile market, for the last three years the company has been building the Kindle Fire around a condensed version of Android and the smartphone may be a way to continue this on a smartphone.
The problem with Amazon’s current OS model is its built on consumption, making the user want to read a book, view a movie or dive into an app. It is not great for messaging, email, Facebook browsing, things needed to build a great smartphone.
If Amazon steps into the smartphone market, they need to make a phone to compete with the iPhone 5S and Galaxy S4. They need a phone with a lot of features that are not necessarily services but simpler ways to do things and awesome features like Siri.
HTC has a pretty awful track record when it comes to supplying demand. Windows Phones from HTC have been rather poor, the Facebook smartphone was a disaster and attempts to hop into a new market have failed for the company.
They have made incredible smartphones on HTC, but the company is general is starting to decade with the internal management jumping ship and the consumer enthusiasm dropping, even with the better smartphones.
Amazon is great at marketing devices, they have their big e-commerce homepage to entice people into a cheap phone. The question is can this become something people enjoy using or will it be another half-loved gadget for a cheap buck.