Amazon could be working on a Kindle smartphone, as the company looks to break into the lucrative smartphone market in 2012.
The rumours are founded on comments made by analysts at Citigroup, based on checks on the supply chain in Asia. It is suggested that Amazon is in talks with Foxconn, and that a Kindle smartphone device could be available by the fourth quarter next year.
The step into the smartphone market is seen as the next logical step for Amazon, following the success of the Kindle eReader and the recently released Kindle Fire.
If the rumours are true, it is likely Amazon will utilise the Android operating system, with strong support instantly available thanks to Amazon having their own Android app market, as well as an eBook and Music store.
The smartphone market is becoming evermore competitive, with a whole host of top end Android phones competing with the ever present Apple iPhone and Microsoft's Windows Phone system, which has received a major boost with the recent release of the first Nokia Windows Phone handset, the Lumia 800. However the Amazon brand is a strong name, and with an already established market for providing content and Amazon's reputation for delivering premium products at non-premium prices, an Amazon smartphone may well prove to be a shrewd move.