Amazon Planning to Take on Apple in Smartphone Market

Bloomberg reports 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.

Amazon is also said to be looking to acquire a portfolio of wireless technology patents that would help it stand up to competitors in the market.

Amazon has already generated a considerable amount of interest with its Kindle Fire tablet, a heavily-customized Android device launched late last year. By adding a smartphone to the mix, Amazon would have mobile devices in several different form factors to help spur consumption of the company's extensive library of digital content.