The smartphone market is already a very crowded space with more handsets and operating systems being made available all the time. Consumers have been treated to more affordable options recently and this is about to increase further as the new Amazon phone is real, and there is a possible announcement about the device coming today.

The online retailer will be holding a press conference later today in Los Angeles at 10:30AM PDT, where it is widely believed the company will be unveiling the latest model of the Amazon Kindle Fire tablet PC. Meanwhile though The Verge are suggesting that there may be one more surprise in store at the event, as multiple sources are claiming that the company is working on a smartphone.

It is being claimed that the handset will be running a version of the Kindle Fire’s Android based operating system, and the device will be seen for the first time at the event later today. The handset is not due to be released anytime soon though as it is currently unfinished, but it is believed the device will be running a customized version of Android 4.0 Ice Cream Sandwich.

This is a similar operating system that has been seen on some leaked Kindle Fires, and they are set to feature Nokia Maps as the location solution. This is because altering Android means Amazon can’t use Google Maps, and at yesterday’s special event held by Nokia the Finnish company spoke of adding a “major” partner for its mapping service.

For the time being actual details about the handset are not known, but it will be interesting to find out what carriers will be offering the device and what hardware will be packed inside the handset. It will also be interesting to find out what sort of price level the Amazon phone will come in at, as it will hopefully be priced competitively.