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Amazon already has a cloud service, film and TV streaming service and ereader, so a smartphone would be the next logical step, wouldn’t it?

Reports from Bloomberg suggest that Chinese mobile manufacturer Foxconn is collaborating with the retail giant over a potential Amazon phone running on Android which could be out by the end of the year.

The reports have certainly done both companies’ stock good – Amazon purportedly rising 0.6% while Foxconn rose 3.7% in Hong Kong.

It might be too much of an ask for an Amazon device to use Android 5.0, or Jelly Bean, but Ice Cream Sandwich is definitely within the realms of possibility, given Google recently released the source code for Android 4.0.

Amazon is also looking for wireless patents. The company has brought in Matt Gordon, former Intellectual Ventures bod, as ‘general manager for patent acquisitions and investments’.

This will be an attempt to avoid the lawsuits, more than anything. As Samsung will undoubtedly testify, patents battles aren’t much fun, can be rather expensive if you don't win and, according to Bloomberg, Amazon has been involved in 25 patents cases since the beginning of 2011.

The reports say that Amazon will be trying to compete with Apple and be an ‘iPhone killer’, but will they?

More likely, with their $200 Android Kindle Fire tablet, they will be trying to take sales off Apple by aiming at a budget sector, where they will find company in Mozilla after they recently announced their Mozilla OS.

Would you buy an Amazon phone if it hit the market? Do you agree that a smartphone is the next logical step for the retailers given the other products at their disposal?