The rumored Amazon Android smartphone is likely much more than a myth. In fact, according to DigiTimes the phone was scheduled to launch in Q2 of this year, but has been impacted with a delay due to more testing. Here's a quote with the full scoop,

Market rumors have indicated that Amazon may not be able to release its first smartphone in the second quarter of 2013 as originally scheduled, as the production progress at its manufacturing partner, Foxconn International Holdings (FIH), has not been as smooth as expected, according to sources at the flat panel supply chain.

The production of Amazon's much-fanfared smartphone is still under its engineering verification test (EVT) period due to issues related to its mobile platform, the sources indicated, adding that the development of the smartphone is being handled by FIH's subsidiary Ensky Tech, which has been responsible for the production of Amazon's e-book readers and tablets.

According to Amazon's original roadmap, the planned smartphone should complete its production verification test (PVT) in the first quarter of 2013 and enter mass production a quarter later. But based on current production schedule, Ensky is unlikely to begin volume production of the smartphone in June, said the sources.
It's almost always a good sign when a company holds things back a bit longer to make sure they work out all the kinks in a device. It's best to get it right the first time, rather than have a lack-luster launch due to bugs. Sound off if you are interested in an Amazon Kindle Phone?