Citing people familiar with the plans, the publication says that the handset will be shipped in September -- ahead of the holiday season -- and as smartphone competition heats up, Amazon plans to distinguish itself through three-dimensional viewing technology.
Amazon's rumored handset, joining the company's Kindle tablet range and e-readers, is expected to contain 3D technology through retina tracking as well as potentially fresh advances in gesture control and navigation.
As a late entry into the already congested smartphone space, such technology could help the company gain leverage in a highly competitive market. Apple and Samsung are the current industry leaders, while handset makers such as Nokia and BlackBerry have faced dwindling sales as competitors outstripped them in innovation and advanced consumer technology.
AT&T once held an exclusive contract with the launch of the original iPhone, which assisted the firm in securing lucrative subscriber contracts in the past. If Amazon's smartphone proves a popular novelty in a world where smartphones are all reaching the point of looking the same, the exclusivity deal could once again provide the carrier with a leg-up against rivals including T-Mobile and Verizon.
Amazon's smartphone is expected to be unveiled at an event in Seattle on Wednesday. View the teaser video below: