Amazon is reportedly working with HTC to develop "a range of smartphones", according to a report by Financial Times.
Unnamed sources have said that the development of the first three devices in the range are almost complete. However, Amazon is supposedly reconsidering its planned release date in 2014.
This news adds more weight to speculation that Amazon will launch its own mobile devices, something that analysts have been talking about for years.
If this news does turn out to be true, then Amazon will be following the example of Google, which tied up with Taiwan's Asus and South Korea's LG electronics for its Nexus devices.
Apart from that, if the rumor does materialize, then it will be the second time that HTC has helped a company enter the smartphone market. Earlier this year, the company built the HTC First, he flagship phone for the launch of Facebook Home, an Android launcher replacement. The handset was a massive flop and only 15,000 units were sold. The failure was so great that AT&T dropped the phone's price to just $0.99 a monht after its launch.
This might just Amazon's biggest push into the hardware market since its Kindle e-readers and tablets, which turned out to be a huge hit in the US. And picking HTC as a partner makes sense since selling a smartphone is much more complex than selling tablets. Amazon will require things like carrier partnerships, a global distribution network for its handsets and much more.
With its revenues sliding downhill and its flagships failing to register strong sales, HTC is in a lot of trouble. A partnership with Amazon might just be what it requires to get back into the smartphone race. In the past HTC was a global leader in the smartphone business, but over the last year, it has been beaten by rivals like Samsung. There has also been talk about Lenovo negotiating a deal to acquire HTC.