Amazon has reportedly chosen Foxconn to produce the online retailer's rumored self-branded smartphone. Unnamed sources have told Taiwan Economic News the contract manufacturer "actively scrambled" to establish the exclusive supply deal, as some of its other clients—Nokia in particular—struggle to gain traction in the smartphone market.
Rumors surrounding an Amazon smartphone have circulated throughout the year, culminating in multiple reports of an imminent launch at the company's September Kindle event, however the claims have yet to come to fruition. The latest report, which was noticed by SlashGear, claims Amazon has limited its initial order to five million units, each carrying a wholesale price between $100 and $200.
Previous rumors suggest the device may sport a five-inch display, competing directly with the iPhone and high-end Android phones. Further details remain unclear, though the handset is widely expected to be powered by Android and tightly integrate Amazon's range of services.
Amazon is viewed as a strong competitor in the tablet arena, reaching sales of one million units per week during the 2011 holiday shopping season. It is unclear if the company plans to embrace the same business model for its smartphone release, potentially making little to no profit from hardware sales and instead relying on revenue from its content offerings.
Foxconn is said to be preparing to ship the Amazon phones sometime in the second or third quarter of 2013. The retailer has yet to officially confirm any details from the alleged leaks.