Amazon may be about to enter smartphone market

Amazon may be coming out with its own smartphone according to reports in a number of publications.

It is suggested that the retailing giant may be looking for more ways to capitalise on digital content as more people use smartphones and tablets for their online shopping.

In a report Mark S Mahaney an analyst with the firm Citigroup said Chinese manufacturer, Foxconn International Holdings was working on a smartphone with Amazon which could be ready by the end of next year.

Mahoney said:  "With the clear success of the Kindle e-reader over the past three years, and Kindle Fire possibly succeeding in the low-priced tablet market, we view this as the next logical step for Amazon."

If the report is correct Amazon does face stiff competition from both Apple and other major manufacturers such as HTC and Samsung. It went on to say that the smartphone is likely to be a "mid end device based on the processor it uses".