Is Amazon preparing a phone?

Updated: 
Picture of Amazon's Jeff Bezos and Kindle FireOnline retail giant Amazon may be preparing a mobile phone for release by the end of next year, according to analysts who've looked at orders the company has put in for components lately. This would suggest the company including CEO Jeff Bezos (pictured) has absolute confidence in its KIndle Fire product and sees it as the beginning of a smarter range.

Amazon hasn't confirmed how many Kindles it's sold publicly but today's Times newspaper suggested the figure was 6 million. The next logical stage was to make a smarter tablet, which the company has certainly done with the Fire in America.

This hasn;t yet been released in the UK but reception has on the whole been positive. It's therefore not at all unlikely that the series of systems would be extended.

Supply chain
This is where the analysts have been very clever, if they're right (and very stupid if they're not). They periodically ask the known suppliers of components of computers what they've sold lately and to whom. This is mostly a sanity check - company A claims it's sold a gazillion PCs to talk its share price up, if it's known only to have bought five memory chips then the analysts know it's lying.

In this instance Asian companies confirmed to Citigroup that they had supplied a load of 4in screens to Amazon. There's only one explanation they could think of - Amazon wants a piece of the phone market.

Nothing's going to happen for about a year, but if this is right then there could be a new and very serious competitor in the mobile phone space over the next 12 months,

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