The rumours have come from Citigroup's research department who have been looking at the Amazon supply chain and have come to this conclusion:
"Based on our supply chain channel checks in Asia led by Kevin Chang, Citi’s Taipei-based hardware research analyst, we believe an Amazon Smartphone will be launched in 4Q12. Based on our supply chain check, we believe FIH is now jointly developing the phone with Amazon."
Citigroup's statement goes on to point out that if they are to prepared to sell the product at a loss (as they do with the Amazon Kindle Fire) they could well be able to come up with an Android device that will massively undercut rivals. While it's plausible that it could be a premium device, Citigroup believes any Amazon smartphone is likely to compete with the budget market offering higher specs but for a lower price.
What do you think, will Amazon release a smartphone, would you buy one? Let us know via the comments box below...
Source: All things D
Amazon Kindle Fire unboxing video