For the last two years there has been a lot of speculation that Amazon is working on its own smartphone to go head-to-head with Apple and Samsung’s offerings.

The Wall Street Journal is reporting that the Amazon Kindle Phone is real, and that it might come with a high-tech glasses-free 3D display.

According to the report, Amazon is working on two smartphones and an audio-only streaming device that sounds like a cloud-powered iPod. One of the smartphones is supposed to be a high-end model that will feature a screen that can display 3D images without glasses.

“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, they said. Users may be able to navigate through content using just their eyes.”

The 3D display tech sounds similar to what Nintendo tried in the Nintendo 3DS. There were rumors in March that Amazon’s Kindle Phone would come with a 4.7-inch display, but The Wall Street Journal’s report doesn’t make it clear if that will be the size of the 3D display, or the other smartphone that Amazon is working on.

The 3D display Amazon smartphone is just one element in Amazon’s larger plan to push into the hardware game. Amazon recently acquired a Siri-like clone called Evi, and we’ve also heard rumors that Amazon is working on a TV set-top box as well.

Amazon has setup a secret R&D studio in Cupterino, California called Lab126, where development on the Kindle Phone and other hardware projects is taking place. Amazon has declined to comment on all Kindle Phone rumors, but with the success of the Kindle Fire and Kindle Fire HD, we can’t wait to see what Jeff Bezos and his team have come up with.

• SourceWSJ