Amazon is rumoured to be working on two handsets, one running the Kindle Fire software, and one with a radical new 3D screen and eye tracking technology.
The retail giant has long been rumoured to be developing smartphones based on its Kindle range, but now the rumour mill is pointing to HTC as its manufacturing partner.
It's believed there are two phones on the drawing board - a lower cost version and a high end handset with a 3D screen.
Unsurprisingly both HTC and Amazon refuse to comment on the rumours, and Amazon recently said it had “no plans to offer a phone this year”.
HTC declined to comment on Amazon, but Ben Ho, its chief of marketing, said the company is “always exploring new opportunities”, according to the FT.
“We have been very focused on building our own brand, but we have also been very open to co-branding and collaborating with carriers and other technology brands,” said Mr Ho.
Earlier this month the Wall Street Journal claimed three new devices were in the works, two phones and a home streaming device.
Set to top the range is a 'Kindle 3D', with a display that can show 3D without glasses.
Cameras on each corner of the device would track the user's eye movements, and make the display appear to be moving in three dimensions, according to an anonymous post from someone claiming to be an insider at the firm.
Users may be able to navigate through content using just their eyes using the handset, which is codenamed 'Project Smith'
A source confirmed to Stuff the handsets were 'definitely happening', although refused to divulge any details.
Last week we reported on Amazon's plans for a TV box, and it seems the company won't stop until there's a Kindle for every occasion.