The consumer research team from a US company called Detwiler Fenton, revealed earlier today that Amazon was preparing a new colour Kindle codenamed Hollywood which is capable of streaming video content, or so they've heard from anonymous sources.
The colour Kindle, which Detwiler Fenton did not specifically qualify as a tablet, said that the device could be sold with a promotional video service offering, the same that is currently offered to Prime customers, for an unspecified amount of time.
The research firm also expects it to come with a faster (and better) application processor (presumably based on ARM's architecture) and to feature a 10-inch colour screen, just like the Apple iPad 2 and the Samsung Galaxy Tab 10.1.
The note also suggests that there will be a smaller Kindle colour tablet and that the bigger one may cost a smidgen less than $400, below the price of the Apple iPad.
We will be sorely disappointed if Amazon offers only a video service with its Kindle colour tablet(s). The online retailer has gradually built up a cloud infrastructure over the years that is good enough to match that of Apple and other competitors.
In addition, it has built a portfolio of entertainment services thanks to some judicious acquisitions (Lovefilm, Audible) that it has complemented with some equally smart offerings (Amazon App Store, Amazon Music etc).