Bloomberg: Amazon developing smartphone

According to a new report by Bloomberg, Amazon is looking to enter the smartphone business to compete directly with Apple's iPhone. The company, which launched its Android-powered Kindle Fire tablet just last year, is reportedly again utilizing the Android operating system for the smartphone.

Bloomberg's sources claim Foxconn, an original equipment manufacturer which also develops Amazon's Kindle e-readers, will develop the phone. Additionally, Amazon is currently attempting to acquire wireless patents to defend itself against patent litigation from the likes of Apple and Microsoft, the report states. The two tech heavyweights have recently begun suing Android phone manufacturers for patent infringement relating to the Android operating system. Amazon has declined to comment on the report.

Amazon is widely expected to launch a two new tablets – a 7-inch tablet and 10.1-inch tablet – as successors to the current Kindle Fire in the coming months. In preparation for this move, the company is expected to lower the price of the current Kindle Fire by $50. Google recently announced its first tablet, the Nexus 7, through a partnership with Asus. The tablet takes aim at Amazon's Kindle Fire, which is the most popular Android tablet on the market.

Source: Bloomberg

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