The device is likely to give a whole new dimension to smartphone gaming with advanced technology. As per reports, Amazon phone will have access to three dimensional shopping. It is being speculated that the users would enjoy 3-D shopping experience with an unconventional interface.

The handset, expected to be priced fairly, may support free video streaming service.

If the company launches a smartphone, it would be jumping into a crowded market dominated by Apple Inc and Samsung Electronics Co Ltd.

Amazon has made great strides into the hardware arena as it seeks to boost sales of digital content and puts its online store in front of more users. Amazon recently launched its USD 99 Fire TV video-streaming box and its Kindle e-readers and Fire tablets already command respectable US market share after just a few years on the market.

Rumours of an Amazon-designed smartphone have circulated for years, though executives have previously played down ambitions to leap into a heavily competitive and increasingly saturated market.