DigiTimes is reporting that both Amazon and Microsoft have selected Foxconn to manufacture their respective rumored smartphones. The report says that both companies are planning to build their own devices and release them in mid-2013. DigiTimes is making these reports based upon sources in the upstream supply chain.
Foxconn has, of course, declined to comment on the rumor. The rumor says that Microsoft's devices will utilize Windows Phone 8, as would be expected. The Amazon smartphone details are slim, however, the sources say that the handsets will likely be limited in volume at launch.
It's expected that Microsoft would use the Surface branding. Amazon could possibly apply the Kindle branding to its smartphone, if it does produce one. Keep in mind that this is just a rumor, but it's not so far-fetched that we can throw it out immediately.