Amazon declares war on Apple with launch of MOBILE PHONE and new tablet tomorrow

Amazon is set to unveil a mobile phone running Google's Android software tomorrow.

The retail giant is believed to be set to make the announcement at a New York event.

It is also set to unveil a new range of Kindle e-book readers and a new version of it's Fire tablet.

The firm teased the new reader and tablet in a TV ad shown last night in the US.

It will put the firm into a head on battle with Apple for the lucrative tablet market

However, The Verge today claimed Amazon will have another surprise - a mobile phone.

The web site said it expected Amazon to show off an unfinished version of the handset running Google's software.

The site said: 'Multiple sources have confirmed to The Verge that Amazon is working on a smartphone that runs a variant of the Kindle Fire's Android-based operating system, and we're now hearing that the device will be shown to the press tomorrow.

'The phone itself is said to be currently unfinished, so if Amazon does announce it we wouldn't expect too many details.'

It is believed the handset, and the new tablet, will run a customised or 'forked' version of Jelly Bean, Google's latest version of the Android software.  

Nokia has also hinted a 'major partner' is soon to be announced for its maps service, which could be Amazon.

Amazon already offers an app store for Android handsets in both the UK and US

Amazon already has its own app store to sell Android apps in both the US and UK.

It's larger fire tablet also runs a modified version of the Android software the phone is believed to run.

A new larger tablet has also been teased in a TV spot by Amazon, although no details are available on what features it will have.

Google is unlikely to be happy about the plans, as Amazon devices come pre-installed with Amazon's own app-store in preference to Google's own Play store.