Based on various reports it seems that Amazon is intending to release a tablet device towards the end of the year, which will see it competing against Apple's indomitable iPad 2.
If the most optimistic forecasts about the arrival of Apple's third generation tablet are true, then Amazon could even be running into far sterner opposition. In this case, some might be right to question their decision to enter the tablet arena at all.
Many experts however, think it is worth Amazon's effort, since a tablet which comprises all of Amazon's content (eBooks, video, audio, software, plus the Android Appstore) could be a big success. The company's giant virtual library is something Amazon has that other iPad rival producers don't, and it might just be the trump card.
Amazon's strong connection with online shoppers would no doubt raise sales; while the Kindle e-book reader developed by Amazon offers proof of the company's ability to create an innovative best-selling device.
Amazon is likely to use the same selling strategy they use with the Kindle - offering the tablet at a low price and selling the content later, providing a cheaper alternative to the iPad.
On the other hand, tablets, unlike the Kindle, can function even without purchasing content, so selling it cheap may be a risky move for Amazon.