ADR studios tease a photo-sharing device, similar to the Instagram app, could be available in 2013.
The first prototype of the Instagram Socialmatic camera is expected to be finished by the end of the year, leading many to believe the product will be available six months later.
Instagram, a service that allows users to take photos using filters, currently has 80 million registered users since its launch in October 2010.
According to reports, the square, handheld device will sport a flat touch-screen display, with a built-in printer and 16GB of storage. It will also come with Wi-Fi and Bluetooth capabilities, so users can share pictures instantly.
The device is also believed to come with two separate camera lenses – one for normal photos and another for filtered shots, as well as an LED flash
ADR first announced plans for an Instagram-specific camera in May, and since has led to masses of speculation online.