Amazon Tablet PC, New Kindle Due Fall 2011: Report

It appears Amazon.com Inc. will introduce its own tablet computer this October. It's a move that will add a new dimension to Amazon's ongoing rivalry with Apple, as the two continue to compete for digital app consumers.

It's expected that Amazon's tablet will feature a nine-inch screen and will run Google's Android operating system (OS), already a popular option on smartphones. In addition, it appears most of the manufacturing process will be outsourced to a still unknown Asian company.

A Cheaper Alternative to an iPad

An anonymous source indicated that the device will not have a camera, a move that would represent the inclusion of one less feature than Apple's iPad. This could be an indication that Amazon is planning to market its device as a no-frills (and cheap) competitor to its rival's product. (Source: wsj.com)

Rumored features include giving users the ability to easily download and watch videos, read electronic books and listen to music. All of these items can be purchased or rented from Amazon's app store.

New Amazon Kindles Coming, Too

Amazon will also release two new versions of its Kindle e-reader to go along with the new tablet. One will reportedly feature a touchscreen, while the other will forego that technology in favor of a lower cost. The new Kindles are also expected to launch in October.

In the meantime, Amazon has announced a price reduction of its current Kindle device, with a 3G version now reduced to $139 down from $164, and the ad-free edition reduced to $189. (Source: pcworld.com)

Although it hasn't released official statistics to support the claim, Amazon says that the Kindle is now its best-selling product of all time. Analysts believe about 7.5 million Kindles are being used in the United States right now, meaning Amazon's device owns about a two-third share of a $1 billion market.