Bloomberg reported today that that Seattle-based Amazon is currently developing a new smart phone with Foxconn, the Chinese mobile company that manufactures the iPhone. According to sources, an Amazon phone has been in the works for quite a while; last year, the company filed both hardware and software related patents, including ones that cover wireless technology and phone builds. Though this phone will be developed using Android technology, the company will most likely fully customize it to deliver a proprietary user experience.


Amazon, which made a successful foray into the personal tablet market with the Kindle Fire just seven months ago, is well positioned to be a mobile player. The company is already the world’s largest online retailer and with an expansive library of multimedia content, established distribution channels and large customer database. And demand in mobile is only growing: research firm Gartner estimates that almost 500 million mobile phones will be sold this year and an eMarketer study shows that 70% of marketers plan to invest more money into mobile in 2013.


Even at this nascent stage, many tech enthusiasts have already begun to label to the Amazon phone as an “iPhone killer.”  But the way we see it- a smartphone from Amazon may be more disruptive to the mobile commerce industry than to the mobile technology industry. The platform will, no doubt, integrate seamlessly with all of Amazon’s main commerce properties: music, video, and books as well as its wider marketplace covering everything from household items to high fashion.  The result? On demand entertainment anywhere, easy integration with social networks, a rich environment for ads, and one-click mobile shopping. With its own commerce friendly smart phone in the works, the world’s largest e-commerce may just become the world’s largest m-commerce.


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