Foxconn International Holdings Ltd. (2038), the Chinese mobile- phone maker, is working with Amazon on the device, said one of the people, who asked not to be identified because the plans are private. Amazon is seeking to complement the smartphone strategy by acquiring patents that cover wireless technology and would help it defend against allegations of infringement, other people with knowledge of the matter said.
It makes a lot of sense on so many levels - Amazon has the retail presence to truly compete with Apple, they can very quickly build a digital marketplace, and they can heavily subsidize hardware themselves without going to carriers. I'm surprised it took so long.
Of what will buy them out: The Wall Street Journal recently reported “outright buyers could include Asian handset makers like HTC Corp or online retailer Amazon.com Inc. which has jumped into the tablet business.”