An Android-based tablet may be in the pipeline at Amazon, something that could bring some in-house competition for the Kindle family.
MG Siegler of Techcrunch reports that Amazon will release an Android-based App store and will team it up with an "iPad competitor".
We already know that Amazon is working on hardware other than the Kindle at Lab 126.
Back in August 2010, Cnet also asked whether Amazon would be interested in launching its own tablet after it emerged that it acquired a multitouch hardware company, Touchco, and is collaborating with Qualcomm to produce better display technology (Mirasol).
Although the idea of a tablet was not raised in the flow of rumours back then, it is not impossible that Amazon will be releasing products to compete with Apple's own products and services, all of which have started to rival Amazon's own core services (iBookstore for example).
One good question though is why would Amazon sell two products rather than one? It would mean handling two platforms concurrently.
But then they would be focusing on two different & distinct audiences with two completely different sets of features; akin to the iPod Nano and the iPad.