Amazon unveils the Fire Phone

Amazon.com stepped into the smartphone ring, unveiling the Fire Phone, a 4.7 inch device with 3D capabilities, a 13 megapixel camera and free photo storage. Users can control the phone by tilting it, adding a three-dimensional element to its screen.

They can also navigate through menus or maps just by moving the phone from side to side. The Fire Phone even employs eye-tracking technology, so that the image on the screen changes as the users moves his or her head.

The phone is Amazon's bet that it can take on Apple and Samsung, while drawing more customers into its Prime subscription service universe. It plugs directly into Amazon's Prime Video, Prime Music and cloud storage services. It is also closely integrated with the company's Kindle reading apps and Audible audiobooks services.

Amazon said the phone, which will be available exclusively through AT&T, will start at $199.99 with a 2-year contract for a 32 GB model. A 64 GB model costs $299.99. Without a contract, the phone will cost $649.99. Pre-orders for the phone begin soon, and the phones will be available starting July 25.