Amazon-HTC phone could be for Amazon Prime subscribers only

On Tuesday, we told you about the rumor that Amazon was working on a smartphone along with Taiwan based manufacturer HTC. And while Amazon has continuously shot down rumors about producing a branded smartphone, this time there are two insiders who say that both Amazon and HTC have been in talks about building a new handset since June.

According to a published report on Wednesday, no decision has been made whether or not to proceed. Amazon wants to distribute the phones by selling subscriptions to Amazon Prime, purchased through carriers, so that more devices can access its Amazon Instant Video service. Amazon Prime has morphed from being a faster shipping service to a platform for streaming movies and television shows. And while earlier this year Amazon shot down rumors that it would give phones away for free and sell content, apps and cloud based storage, apparently this is one option being considered. Last year, rumors started circulating that Foxconn was building a new smartphone for Amazon.

Those familiar with the project say that three models are being discussed by HTC and Amazon. HTC refuses to comment on the speculation while Amazon has not responded to requests for a statement.

source: Bloomberg