Amazon is probably making a phone. Via Bloomberg:
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.
I certainly don’t want to buy a smartphone made by the same people who sell everything from DVDs to t-shirts, but there seems to be a considerable market of people who want dirt cheap electronics. Amazon doesn’t make a profit off their hardware like the Kindle Fire – they just want to use these devices as a vehicle to sell more product. A smartphone from Amazon would be a serious threat to the Android phones currently staking out the low-end phone market.