This device should be based on a customized Android build just like the Kindle Fire Tablet PC.
The company could use a similar integrated user interface for this rumored smartphone model with connectivity with various Amazon powered web services.
Amazon is already expected to launch some new variants of Kindle Fire with larger displays in the coming months.
Smartphone market is very different from Tablet PC market as it would require Amazon to sign contracts with mobile carriers.
It would be interesting to see if their smartphones would be as disruptive as their eBook Readers have been.