MacRumors is reporting this rumor too. If true, I think that it would be a small, smartphone version of the Kindle Fire. I cannot imagine Amazon releasing something that doesn't plug into their ecosystem and lock out other ecosystems. If someone is happy with Amazon's limited version of Android, then they might buy it. But frankly I don't see these things selling in numbers that would bring huge profits. It would be just another lackluster smartphone running Amazon's version of a castrated Android. Meh! And you can bet it will be loaded with zillions of apps you cannot delete because Amazon wants the customers to buy lots of Amazon goods and services.