Amazon Developing a Smartphone to Rival Apple's iPhone (Report)

Amazon has a smartphone in the works that would provide competition to Apple's iPhone and other devices, Bloomberg News reports.

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Citing sources, Bloomberg said Amazon was partnering on the device with Chinese company Foxconn International Holdings, which manufactures mobile phones. It is also seeking to acquire patents for wireless technology as a protection against infringement lawsuits.

A smartphone would help Amazon, whose business strategy hinges on digital sales of books, movies and songs, compete in the territory of Apple and other rivals with affordable, wildly popular devices.

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Amazon recently hired Matt Gordon, who was previously senior director of acquisitions at Intellectual Ventures Management, to be general manager of patent acquisitions and investments.

The internet giant is meeting with sellers of mobile patents, according to Bloomberg. Amazon, led by CEO Jeff Bezos, had mulled the purchase of patents from InterDigital Inc., but the company said in June that it's selling assets to Intel Corp. for $375 million.