Does Amazon have plans to release a phone?

Rumours of a merger with RIM suggest that an Amazon phone is in the works

Amazon has shown an interest in merging with RIM, according to sources at Reuters, fuelling rumours that the online shopping giant has its sights set on an Amazon phone.

RIM turned down Amazon's takeover bid, scuppering the deal – but given the success of the Kindle range, and Amazon's recent venture into full-fledged tablets with the Kindle Fire, an Amazon smartphone doesn’t sound too far-fetched.

RIM’s recent announcement stating that no BlackBerry 10 phones will drop until the end of next year has done it no favours, and rumours of Nokia and Microsoft entering a joint bid with the troubled company have also been doing the rounds.

Either way it seems that Amazon has its sights set on entering another hardware market – and if the success of the Kindle is anything to go by, it could be on to something…

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