Amazon to Build its Own Smartphone

Amazon may be coming out with its own smartphone, according to a new report from Bloomberg. The company reportedly is working with Foxconn to develop the hardware, which will likely run Amazon's version of the Android operating system.

Interestingly, the hardware, cloud computing and e-commerce juggernaut is said to be working with Foxconn — which has come under intense scrutiny in the past year for working conditions in the Asian factories where it manufactures Apple gadgets — to create the Amazon iPhone competitor.

Bloomberg‘s report is based on “two people with knowledge of the matter.”

Amazon is also reportedly seeking to acquire a wide range of smartphone-related patents to guard against infringement accusations. That’s likely motivated in large part by Apple’s recent success in getting a U.S. District Court judge to grant a preliminary injunction blocking sales of Samsung’s Galaxy Nexus — currently the only smartphone capable of running the Android operating system’s most recent version.

Amazon’s Kindle Fire tablet has emerged as a very popular lower cost alternative to the iPad among consumers, so an Amazon smartphone does have some precedent for potential mobile success. A decent Amazon smartphone would also help it continue to reap profits through selling digital media including books, movies and music.