Amazon plans on launching a smartphone to compete with Apple's iPhone and other handset manufacturers such as Samsung, HTC and LG.
The company is reportedly working with Foxconn to create the device, a manufacturer that normally produces Apple products such as the iPad and iPhone, according to a report from Bloomberg.
Amazon also plans to build up a wireless related patent portfolio in preparation for the launch of the device.
The new smartphone will be similar to the Kindle Fire tablet that the company has already been enormously successful with.
Amazon devices will have full access to the company's own series of content that includes distribution channels, cloud services for downloading movies and books.
The company also recently purchased the 3D mapping firm known as UpNext. Amazon is most likely looking to create a feature on its phone that can compete with the 3D mapping now found on Android and iOS.
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The successor to the Kindle Fire tablet could also be unveiled as early as next month, according to a recent report from CNET.
The publication cites a "credible source" for the information on the unveiling, and points to DigiTimes for the rumored specifications on the device.
The site recently wrote an article based on specs leaked to it by an "upstream supply chain" who revealed that the tablet will have a 7-inch display with a 1280 x 800 pixel resolution. It is expected to retail for $199. Once the new version launches, the original Kindle Fire's price will drop to $149.
9to5 Google is reporting that the device will feature a camera and physical volume-control buttons.
However, there are no other specifications available for the next-generation Kindle Fire at this time.
Amazon is planning some big releases for the end of this year and has its sights set on becoming a mainstay in the tablet and smartphone market.