Amazon slashes prices on budget phones by half -- but there's a catch

From CNET: If you could save a few bucks on a new phone by allowing ads on your lockscreen, would you do it?

That's the idea Amazon is pitching with a new offer to its Prime members for two unlocked budget phones. Starting Wednesday, the e-commerce giant will take early orders for the Blu R1 HD for $50 and Motorola's Moto G for $150. That's $50 below the regular retail price for both. (There's a limited promotion on the Moto G that takes an additional $25 off.)

Here's the catch: Those lower prices are available only for customers who agree to receive personalized ads on the devices' lockscreens.

Amazon already offers a similar ad-supported model for its Fire tablets and Kindle e-readers, allowing it to trim a few bucks off the price of the devices. For example, someone can buy a Fire HD 8 tablet for $165 or agree to Amazon's lockscreen "special offers" to cut the price to $150. After years of providing this kind of deal, the company says the "vast majority" of customers agree to take the cheaper device with ads.

Yet this is the first time Amazon will start making such an offer for phones, as well as for devices it doesn't make itself. Since folks tend to use their phones a lot more than a tablet or e-reader, time will tell whether such a concept will take off with customers. If it does, there's a chance some higher-end and more desirable phones will get added to this program.

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