Amazon is in the process of building a slew of new hardware to follow the Kindle, according to rumors. The latest addition to rumors is that Amazon is said to be working on a high-end smartphone with a holographic 3D display.

This smartphone won’t require users to wear 3D glasses, and it works just out of the box. Citing “people familiar with the company’s plans,” WSJ says that the phone would use retina-tracking technology that would make the images seem to be floating “like a hologram and appear three-dimensional at all angles.” It is also reported that users would be able to navigate the phone’s interface using only eyes, all thanks to the retina tracking technology (similar to what is found in the Galaxy S4).

One of the devices is a high-end smartphone featuring a screen that allows for three-dimensional images without glasses, these people said. Using retina-tracking technology, images on the smartphone would seem to float above the screen like a hologram and appear three-dimensional at all angles.

Nintendo 3DS also features the glasses-free 3D technology, and the Galaxy S4 is also packed with an eye-tracking mechanism. Amazon seems to bundle up both the technologies, and build a 3D smartphone.

Amazon is already known to develop cheap tablets like the Kindle Fire HD, and e-ink readers like the Kindle and Kindle Paperwhite, but what’s exciting about this new rumor from WSJ is that the company might also price the new smartphone within reach of budget conscious consumers. And with this new phone, Amazon will be directly competing with companies like Apple, Google, Sony, HTC, Samsung, LG and others.

Amazon is also reportedly working on a television set-top box (STB) to help drive the sales of Amazon Instant Video. The company might also be working on an audio streaming device. What’s unclear right now is that Amazon might drop the idea of building such products due to performance or financial concerns. Only a few would be able to make it to the shop shelves.

In the past, Apple have been granted a number of patents for 3D technology, so it might be possible that Apple too might be thinking to bring such a tech to its iPad or iPhone, perhaps? Well, we don’t know but when it comes to 3D, we’re definitely excited!

Would you buy an Amazon smartphone, provided it’s priced attractively? Do you think the e-commerce giant would be able to compete with smartphone giants like Apple and Samsung? Let us know your thoughts in the comments below.