Amazon rumoured to be building 3D smartphone

Amazon is rumoured to be developing a number of new hardware devices including a smartphone with a 3D holographic display.

According to reports from the Wall Street Journal, the device uses eye-tracking technology to make images on the interface look three dimensional from any angle and float above the screen. The phone would also allow users to navigate using only the eyes, according to people familiar with the firm's plans.

The report also claims the retailing giant is planning to make a couple of 4G smartphones as well as an audio streaming device and a television set-top box. The products are said to be in development at Amazon's Lab126 facility in Cupertino, a stone's throw away from Apple HQ. The projects are mysteriously coded as A, B, C and D or collectively the Alphabet Projects.

It is said that some of these devices could be available for retail within a matter of months. Although sources warned that any or all of the rumoured devices could be shelved over "performance, financial or other concerns".

Amazon has refused to comment on the rumours.

Rumours of a Kindle smartphone intensified in April when it was reported that former Windows Phone executive Charles Kindel had updated his LinkedIn profile to say he had been hired by Amazon to work on "something secret".

A recent YouGov poll put Amazon on par with Apple and Samsung for the quality of its tablets. The survey anticipated that it and others could now take additional market share from Apple and its iPad and iPad Mini.