Amazon Preps Smartphone, With FoxConn’s Help: Report

Simon Dawson | Bloomberg | Getty Images

Online retail giant Amazon is planning to jump into the competitive smartphone market next year, a report says -- with help from one of Apple's key allies.

The Chinese manufacturer Foxconn, which also assembles the tech giant's iPhone, is reportedly lending a hand to Amazon by manufacturing its smartphone. Foxconn is expected to ship up to five million units in 2013, according to a report from Taiwan Economic News. The mobile device will be priced in the $100 to $200 range, the story said.

Over the last year, there has been rampant speculation of an Amazon produced smartphone. Some analysts say a smartphone is an obvious next move for the company. However, there are concerns that a move into cell phone hardware could weigh heavily on Amazon, due to high-costs.

"It requires carrier distribution and developing apps like maps and search, which are potentially large investments for Amazon," Colin Sebastian, a senior analyst for R.W. Baird,told CNBC earlier this year.

Amazon is already in the tablet space, competing against Apple's iPad and Google's Nexus tablet.

Amazon did not immediately respond to a request for comment.