Why did Amazon make a phone?

Yesterday, Amazon announced the Fire Phone, its $200 answer to high-end Android models and the iPhone. The New York Times' Farhad Manjoo interviews Amazon chief Jeff Bezos.
Our product development process always starts the same way. We don’t start out by saying, If we were going to build an X, how would it be different? How would it be better?” And it can’t just be different. It has to be different constrained by customers caring. It’s easy to be different if you don’t constrain it that way. But it has to be useful.

Here's a TL;DR from Matt Haughey.