Amazon is reportedly working with Taiwanese smartphone maker HTC to develop a range of smartphones, as part of its efforts to vie with Apple and Google.
With three different smartphones being worked on overall, one of them is already in an advanced stage of development.
Reports of Amazon's entry into smartphone market have been passing for up to two years, while the new device is doubtful to be launched this year but may perhaps be rolled out in 2014, if everything goes well, reports Financial Times.
HTC chief marketing officer Benjamin Ho said the firm is always exploring new opportunities.
"We have been very focused on building our own brand, but we have also been very open to co-branding and collaborating with carriers and other technology brands," Ho said.
Amazon also has its own Kindle Fire range of tablets.