I quote:
"Bloomberg reports that Amazon is currently working with Foxconn on a new smartphone product, one that would compete head-to-head with the iPhone and Android devices."
As compared to the title of this thread:
"Amazon Planning to Take on Apple in Smartphone Market"
Amazon is _NOT_ planning to "Take On Apple".
There's a big difference. The only reason I know that Amazon's intent is not to take on Apple, is due to the people I know within the organization.
Are they building a smartphone? Yes, but not to compete with Apple.
Amazon's intent is to build "another smartphone choice" for the public to choose from.
https://www.macrumors.com/2012/07/06/amazon-planning-to-take-on-apple-in-smartphone-market/
Amazon is certainly competing with Apple.
They are competing with the iPhone and the iTunes store.
Sure, their product is for a lower price point at the current time, but mark my words I believe Apple will jump into this space as well.