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Is Amazon working on a Kindle Phone?

Is Jeff Bezos truly following in the footsteps of Steve Jobs? It certainly seems that way on the surface as Amazon surprised many in the industry when the Kindle eReader devices started selling well. This week the company released its first tablet, the Kindle Fire; now AllthingsD.com reports that Amazon might be launching its own smartphone as well.

The report is based on a note today from Citigroup’s research department, which states, " ... we believe an Amazon Smartphone will be launched in 4Q12." The report adds that the phone will have the OMAP 4 processor from Texas Instruments inside and that the phone will be made by Hon Hai’s TMS business group, which also makes the company's Kindle eReader and the Kindle Fire.

The report also says that the smartphone itself could cost between $150 to $170 to make and it's likely that Amazon will sell it to the public at close to its manufacturing costs. Indeed, the report adds, "If Amazon is actually willing to lose some money on the device, the price gap could be even bigger."

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