According to multiple internet resources Amazon is developing its own Android smartphone. It is expected that the company introduce the new Android smartphone among with the next generation of Amazon Kindle Fire tablet.  Most likely the new smartphone will be manufactured by Chinese Foxconn International Holdings. No technical details on device are disclosed yet.

By releasing the new smartphone Amazon may increase revenues from sales of digital content – books, music and videos. Most likely the company will follow the same business model as with Amazon Kindle Fire tablet. Amazon currently is not making money on selling Kindle Fire tablets. Instead, the revenue comes from selling digital content. Kindle Fire tablets just provide convenient user interface for Amazon content.

According to Bloomberg, Amazon is now actively buys patents in wireless communications technologies in order to protect the smartphone from potential legal attacks of competitors.

Recently Amazon announced the completion of the acquisition of UpNext known by developing and providing cartographic services.  This fact triggers expectations that the next generation of Amazon Kindle Fire tablet as well as the new Amazon smartphone will be equipped by GPS module and have navigation features.

Total sales of smartphones in the first quarter of 2012 totaled to 390.4 million units. The leading position on sales holds Samsung – the manufacturer of Samsung Galaxy smartphones. The main competitor of Samsung is Apple – the manufacturer of iPhones.