Bangalore: Amazon will soon be crowding into the Smartphone market heated up already with a bunch of players striving to compete with the iPhone and others running on the Android operating system.

According to the report by Bloomberg, Chinese mobile phone-maker Foxconn International Holdings, who is also the manufacturer of Kindle Fire, has joined hands with Amazon to make this possible. After Google announcing its own tablet Nexus and rumors about Facebook developing its own Phone, this step of Jeff Bezos seemingly indicates that he wants to gain full access into the Smartphone arena.

With a loyal customer base of over a hundred million, e-commerce giant Amazon might be able to launch a budget Smartphone like it did with Kindle fire and cover up the revenues with its massive collection of digital books, music and movies. Amazon is also reported to have recently hired a new General Manager, Matt Gordon who would be acquiring patents for it, that will cover Wireless Technology and would help it defend against allegations of infringement. Apple’s recent success in getting a US District court blocking the sales of Samsung’s Galaxy Nexus, the only phone running on Ice Cream Sandwich version of Android, can be the primary motivation for this move by Seattle-based Amazon.

Gadget Gurus are counting on the low cost for its probable popularity. They believe that it can be an alternative to Apple’s iPhone just like Kindle Fire is to the iPad. As of now, there is no news about the technical specifications of the proposed phone but it is clear that it will be running on Android, customized especially for Amazon having applications to directly buy stuffs from Amazon Marketplace.

The hearsay about a Smartphone launch by Amazon, which is relatively new to the hardware game, surfaced in November last year by Citigroup’s research department.

Considering Samsung Galaxy S III, HTC ONEx and iPhone 5 which is in the pipeline, it will be a great wait to watch if Amazon’s Smartphone is able to steer it through them and emerge as a pioneer or will it prove to be just another Smartphone.