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Amazon Planning To Produce 3m Tablets To Rival iPad 2

Amazon has apparently ordered its partnering ODM, Quanta Computer, to produce between 800,000 and one million tablets per month over the three months starting August; that's up to three million in a quarter - in comparison, Motorola's XOOM is expected to sell 1.5 million units for the whole of 2011.

The news comes from Taiwanese business news outlet, CENS, and provides with a potential hint of Amazon's eagerness to take on Apple.

The Coyote, as it is apparently nicknamed, will almost certainly debut before the end of the year and should be one of the more successful Amazon products by Christmas.

As it stands, the iPad 2 is by far the most successful tablet on the market followed, according to market sources, by the Samsung Galaxy Tab and the Asus Eee Pad Transformer.

We back Amazon to become the first retailer to sell a tablet with a Quad-core Nvidia Tegra 3 SoC combined with Google's Android Ice Cream Sandwich OS.

Amazon will also be busy tidying up its many services to provide with a decent alternative to Apple's cloud-based offering, the iCloud.

Expect a music store, an app store, movies on demand as well as other digital services to be part of the Amazon experience at launch.