A lot of Android phones are loaded with ads and crapware. It hurts the user experience, but in exchange for using your phone as a billboard, the OEM gets cold, hard cash from the advertiser. Amazon is now moving the choice for this option to the user, where it is loading unlocked Android phones with ads and offering them to users at a discount.
The program is called "Prime Exclusive Phones," and at launch it offers the unlocked Moto G4 for $149.99 with lock-screen ads or the BLU R1 HD for $49.99 with ads, both $50 off. Amazon's announcement calls this "breakthrough pricing" that is enabled by "personalized offers and ads, including deals and product recommendations, displayed on the phone's lock screen. When a customer sees an offer, they can tap to learn more about it or simply unlock their phone to dismiss." Besides preloaded Amazon apps, there are full-screen lock screen ads and ads in the lock screen notification panel.
The good news is that this is a choice. On the Amazon listing page, the phones are listed are available with and without ads, listed as "Prime Exclusive - With Offers & Ads" and "Standard Version - Without Offers & Ads." This hardware offer mirrors a similar strategy Amazon took with its Kindle line, which was also available at a discount in exchange for ads.
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