A smartphone from Amazon "may be coming next holiday season," noted Citigroup Global Markets analyst Mark Mahaney.

Such a hand in the smartphone market could better position it against Apple and Google for digital media sales as it strives to become an all-encompassing retail powerhouse.

Amazon's entry is uncertain, but the device is expected to be manufactured at the same location -- Hon Hai's TMS business group -- where its Kindle e-reader and Fire tablet are made, the analyst reports.

Citigroup says a smartphone is the next logical step for Amazon to follow up its popular Kindle e-reader and new Kindle Fire.

Source: USA Today | Scott Martin