American online retail giant, Amazon is believed to be working on a new smartphone offering, which is dubbed, the 'Kindle Phone'.

According to new media reports, the smartphone might feature holographic display with a retina-tracker allowing users to see three-dimensional images without the need for special glasses. Experts have said that an entry into the smartphone market is a natural next step for the company after the Kindle Fire line of tablets proved to a worth competitor to Apple iPads.

Amazon officials have not commented on the reports of a new smartphone from the company. However, the new holographic display technology is still new and not many app developers are interested in making an extra effort for making apps capable of using the technology in the market at present.

Amazon will have to create a new ecosystem along with its smartphone in order to create a distinct image in the minds of the customers and attract its own set of customers. A 3D technology is still in tis nascent stage and it needs some years to establish itself as a mainstream technology. The new smartphone from Amazon might help developing the technology further.