We had earlier posted about the possibility of an Amazon smartphone when reports came out that Amazon has been trying to strike deals with some wireless device manufacturers to acquire the rights to wireless patents. However, we at that time we weren’t sure whether a Kindle smartphone was really brewing under the wings of Amazon. Now The Wall Street Journal has chimed in on the rumor.

The Wall Street Journal reports that a person associated with the process of Amazon testing said that the company is currently testing out a smartphone with a screen size between 4 to 5 inches. If the rumor turns out to be true, the smartphone would fall right in with the pack of current Android phones.

Amazon has proved to be a worthy competitor in the tablet market with their Kindle Fire. A primary reason for the success is Amazon is reportedly more interested in the revenue from digital content sold through its devices rather than revenue from purchase of the tablet itself. As such, Kindle Fire costs a meager $199 compared to $499 of the popular iPad. This has also brought in expectations of a Kindle smartphone priced lower than its top contenders.

In any case, whether or not the Amazon Kindle smartphone will satisfy its customers just like Kindle Fire does is a question for the future. The time now is to speculate about what specifications we can except from it.

[via Wall Street Journal]