Amazon is planning to enter the smartphone market and is developing a handset to compete with Apple and Google.
This is according to Bloomberg, which quotes anonymous sources as saying the online retail giant is looking to take on devices running Apple's iOS and Google's Android operating system.
It is said to be working with Chinese electronics manufacturer Foxconn to develop the phone and plans to purchase patents that would protect it against infringement allegations.
Amazon already produces the Kindle eBook reader and Kindle Fire tablet and analysts have been predicting the company will look to increase its presence in the wireless device market. Spokesman for the firm Drew Herdener declined to comment when questioned on the matter by Bloomberg.
The smartphone market is currently dominated by Apple's iPhone and Samsung, which recently launched its latest Android-powered smartphone the Galaxy S III.
According to IDC, Samsung shipped 42.2 million smartphones in the first quarter of 2012, followed by Apple with 35.1 million.
Posted by Simon Thomas