Amazon is also working on their own smartphone. Amazon ordered components from Taiwan that seems to suggest that they are working on their own phone.

Amazon, the world’s biggest online retailer, just released the Kindle Fire tablet in September and they are now working on a smartphone.

Mark Mahaney, analyst at Citigroup says that according to Amazon financial data, the company is working on their own smartphone. “We think that Foxconn along with Amazon are working on creating a smartphone. Still, we believe that Amazon will pay Foxconn, but the smartphone and some components will be manufactured by the GMS group” he said.

Also, he thinks that Amazon will use the OMAP 4 processor developed by Texas Instruments. According to the analyst, the Amazon Smartphone might be sold at a price between 150 and 170 dollars.

At the beginning of this year there were rumors according to which Amazon intends to produce Android devices, one of them being the Kindle Fire  tablet which is already present on the market.

The analyst doesn’t believe that Amazon might switch to Microsoft. Microsoft managed lately to convince some manufacturers to stop using the Android OS from Google

Besides a phone it is believed that Amazon is also working on a tablet based on the Tegra 3 platform which will be released next year as well.