Amazon and HTC working on a Kindle smartphone

E-commerce giant Amazon is working with smartphone giant HTC on a possible Kindle smartphone, according to reports.

Citing “people familiar with the project”, the Financial Times is reporting that one of the three devices being worked on by the two companies is advanced in its development.

However, the project has had its timeframes pushed back already and Amazon might yet decide not to go ahead with the launch.

The company recently claimed that it had no plans to launch a smartphone in 2013, suggesting any launch will have to wait until next year.

In April, reports surfaced that Amazon was developing a range of devices including tablets, electronic readers and a planned smartphone.

As part of those efforts, Amazon’s Lab 126 Skunkworks is reportedly working on a set-top box that would allow viewers to stream online video from Amazon’s video on demand store, potentially also running apps from its Android app store.

The device would be sold at a competitive or subsidised price, with the company hoping to earn its money by consumers paying for content to use on the device through its online stores.

Prior to that, there were reports in the Wall Street Journal during July 2012 suggesting the company was preparing for a four to five inch smartphone to enter mass production either later this year or early next year.