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Rumors have been in the air for several months that claim Amazon will compete in the handset space with its own offering, much like it did with its Kindle Fire line of tablets. According to a new report from the Taiwan Economic News, the Internet retail giant has selected the infamous Foxconn to manufacture the handset. Additionally, Amazon is said to have ordered 5 million units and will launch the device at $100 to $200 sometime in the second quarter or third quarter of 2013.

The Kindle Fire line of tablets, which has software based off Android with many custom additions (and even more subtractions), has done wonders for Android’s tablet marketshare, helping the platform close the seemingly insurmountable gap with the iPad. Amazon was the first to offer a tablet at such a low cost, selling in seemingly big numbers. However, no specific figures have ever been given. Many saw the $199 Kindle Fire as a cheaper alternative to the $499 iPad, but things may change this holiday season with the iPad mini now available at $329.

With its large online marketplace and bevy of apps on its Amazon Appstore, we wouldn’t put it past the company to be a serious competitor in the handset game—at least for the Android devotees and the relatively small footprint of countries where Amazon operates/offers content. (via Engadget)

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