When Amazon launched its Kindle Fire tablet, Apple and Google would not have thought the impact on their business. Now if reports about the company planning a smartphone are true, then Apple has every reason to be up and alert! According to two sources close to the matter, Amazon.com Inc is developing a smartphone that would vie with Apple’s iPhone and handheld devices that run Google ‘s Android operating system, Bloomberg reported. 
The report further stated that Foxconn, the Chinese mobile- phone maker, is working with Amazon on the device. Amazon is seeking to complement the smartphone strategy by acquiring patents that cover wireless technology and would help it defend against allegations of infringement, other people with knowledge of the matter told the site.
A smartphone would give Amazon a wider range of low-priced hardware devices that would boost its strategy of minting money from digital books, songs and movies. It would help the company to have a good slice of the market for advanced wireless handsets. Amazon spokesperson refused to comment on the speculation.
According to researcher IDC, manufacturers led by Samsung Electronics Co. and Apple shipped 398.4 million smartphones in the first quarter.
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