Amazon readying smartphone to compete with Apple, Google?

Amazon is reportedly dialing up its battle with Apple and Google by developing its own smartphone.

The Internet retail giant is working with hardware maker Foxconn to create a device to challenge the iPhone and Android-based phones, sources tell Bloomberg. The company is also beefing up its porfolio of patents covering wireless technologies to head off expected legal challenges, other sources told Bloomberg.

CNET has contacted Amazon for comment and will update this report when we learn more.

This isn't the first time we've heard rumblings of Amazon working on a smartphone of its own. Citigroup analysts suggested last November that the Seattle-based e-commerce giant was working with Foxconn to develop a smartphone slated for release in the fourth quarter of 2012.

Indeed, CNET executive editor David Carnoy argued that it's not a matter of if but when Amazon would launch a smartphone . "...I think it's only a matter of time before you see a Kindle smartphone; ult... [Read more]