Now that it's shipped its first tablet, Amazon is now the focus of a new set of rumors. According to Citigroup's research department, there's a large possibility that the online retailer will release a smartphone. Citigroup is basing this prediction on info its gleaned by reviewing the Asian supply chain channels that Amazon uses to build its e-readers and tablets. 

"Based on our supply chain check, we believe FIH is now jointly developing the phone with Amazon. However, we believe that Amazon will pay NRE (non-recurring engineering fees) to FIH but the device and multiple components will actually be manufactured by Hon Hai’s TMS business group (the same business group that makes Amazon’s E-reader and the 8.9” Amazon tablet)." 

Citigroup thinks the phone will be powered by the popular Texas Instruments OMAP 4 processor and retail around $170. There's no word on what OS the phone will use, but it would make sense for Amazon to port its Fire OS over to the phone. 

Are you guys ready for another smartphone platform? 

[via All Things D]