Speculation is rife ahead of Amazons announcement on 18 June, that the company will be launching a smartphone with 3D capability.

So far, the company has remained tight-lipped over what is being unveiled at the launch in Seattle, hosted by founder Jeff Bezos, beyond referring to it as a device. Rumours have been spreading for months about Amazons possible entry into the smartphone market, and the video uploaded by the company on 4 June of people using an off-screen device seemed to imply some form of 3D display or interaction.

In a cryptic move, Amazon has sent launch attendees a copy of Bezoss supposed favourite childhood book, Mr Pines Purple House, with a note attached stating that “the world is a better place when things are a little bit different”, which many have taken as an indication that whatever device Amazon reveals on 18 June, it will have at least one feature intended to help it stand out in a crowded market.

Several of Amazons recent developments would align well with entering the smartphone market. The integration of its Lovefilm subsidiary into the Amazon Prime branding, along with the launch of a streaming music service in the US, all provide the company with a strong collection of content it could offer through its smartphone.

The company also revealed recently that its Appstore has almost tripled its available apps year-on-year, with 240,000 applications and games now available. While still considerably behind iOS and Android in terms of building an ecosystem, it is clear that the company wants to be perceived as able to support any customers who make the move to using an Amazon-driven smartphone.

A report by Forbes suggests that a smartphone could add $3bn (£1.7bn) to Amazons revenue, and a further $500m to its Amazon Prime subscription revenue, with the boost in Prime subscriptions and subsequent eCommerce revenues the real prize for its entry into the smartphone market. Creating a seamless journey from wanting an item to buying it on Amazon, with a minimum number of steps in between, could generate far more sales than the release of a smartphone ever could.

“Amazon cares about phones only as a means to a digital relationship end, a way to make sure customers think of Amazon not just a few times a month, or even a few times a week, but dozens of times a day, creating the opportunity for Amazon to convert as many of those interactions into purchases as possible,” said James McQuivey, vice president and principal analyst at Forrester Research Inc.

“Amazon surely has the evidence that getting a Kindle Fire tablet into consumer hands lifts long-term purchases and probably drives up the number of categories those consumers buy from. It wont need very many Amazon Phone customers before it can confirm whether the same will be true for phone owners.”

Stay tuned to the site tomorrow for news of the announcement.