Bloomberg reported that Amazon is currently working with Foxconn on a new smartphone product, one that would compete head-to-head with the iPhone and Android devices.

A smartphone would give Amazon a wider range of low-priced hardware devices that bolster its strategy of making money from digital books, songs and movies. It would help Chief Executive Officer Jeff Bezos — who made a foray into tablets with the Kindle Fire — carve out a slice of the market for advanced wireless handsets.

Bloomberg also reported that “Amazon is seeking to complement the smartphone strategy by acquiring patents that cover wireless technology and would help it defend against allegations of infringement”.

Source [bloomberg via macrumors]