Amazon.com and Foxconn are reportedly developing a budget smartphone, according to reports from Taiwan. Smartphone parts makers involved in the supply of Amazon?s new smartphone model, said that Foxconn is expected to ship as many as five million units of the new device in the year, the China Economic News Service reported today.

Amazon's smartphone is expectd to be launched between the second quarter and the third quarter of 2013 at a unit price of US$100-200.

Amazon has not confirmed plans to extend its business to mobile phones.

Taiwanese parts suppliers maintaining close business ties with Foxconn, including J Touch Corp. and Young Fast Optoelectronics Co., Ltd. (touch panel makers), are also likely to enagage in Amazon's new device, the report added.

Amazon com has followed a low pricing strategy for its mobile internet devices. A smartphone would further help Amazon make money from digital books, songs and movies.

In addition to the upcoming budget-priced smartphone model, reports say that the U.S. brand has been developing a new version of the Kindle Fire, which is scheduled to land on the market in the third quarter of 2013.