A few days ago, we saw the first rumors saying that Amazon is working on its own Android smartphone – a logical move for the company if you ask me – and now it looks like we have more reports on the matter, with the Wall Street Journal stepping in to shed more light on this unreleased product.

Apparently the Amazon smartphone – it would also be pretty logical to assume it’s going to be part of the Kindle family of devices – is already in testing, which should mean we could see it unveiled at some point in the near future, maybe around the same time the new Kindle Fire tablets are announced.

But the Journal doesn’t expect this Amazon smartphone to come out anytime soon. According to “Amazon’s parts suppliers, who [obviously] declined to be named,” the company is testing the smartphone with mass production possibly set to start late this year or in early 2013.

Specs and features for the device aren’t really available at this time, and chances are we’re going to see plenty of leaked details about this device in the coming months in case Amazon goes forward with its smartphone plans. But the Journal does say that people familiar with the matter mentioned that the smartphone will have a touchscreen display measuring between four and five inches.

In case Amazon will sell the smartphone at cost, just as it does with the Kindle Fire tablet, and in case its first handset will be rather a high-end device than a mid-ranged gadget, then we may see Amazon challenge once again smartphone makers, and deliver yet another blow to the Android ecosystem in the process. Not to mention that such a device could be sold directly by Amazon, thus bypassing completely mobile operators. But we’re only speculating at this time, as we still lack official details from Amazon regarding such a product.

At the same time we’ll remind you that the Galaxy Nexus handset is selling for $349 from Google Play – provided that there’s no injunction to stop sales – and that there are plenty of affordable Android handsets out there, even though you’d be required to ink a new two-year with a carrier when purchasing them.