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Amazon’s Kindle Tablets Cheaper Than iPad 2

It appears that Amazon is determined to land a blow on Apple. They are planning to release two new Android-based Kindle tablets, both with a price tag of under $500.

According to recently leaked information, the 7-inch Coyote tablet could cost $349 while the 10-inch Hollywood tablet could be purchased for $449.

The low prices should not be seen as signifying low performance. Rumours say that the Coyote could be powered by an NVIDIA Tegra 2 processor whose performance is similar to Apple’s A5 processor and the Hollywood could be based on a quad-core Tegra T30 “Kal-El” SoC.

Amazon intended to use Qualcomm’s mirasol displays in its tablets but they will only be available for mass production in 2012, therefore Amazon has to give up the idea of using e-paper for LCD.

The company is planning to release their products around the holidays and the chances are that its Kindle tablets could provide a challenge to Apple’s iPad, since Amazon has a successful media store with music, ebooks, videos and now even apps.

Amazon is preparing to attack the tablet market in the holiday season and offer low-priced high performance tablets. Taking into account all these elements, should Apple start worrying about a real threat to its iPad sales levels?