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Amazon To Build 3m 7-inch iPad 2 Rival Tablets

Online retailer Amazon is taking a huge bet after it apparently ordered three million tablets with a 7-inch IPS colour LCD touchscreen display for 2011 ahead of the official launch of the device tomorrow.

The tablet, called Hollywood, will run on the Cortex A8-based TI OMAP 3 SoC - similar to the iPad and the iPhone 4 - and will come with 512MB RAM, twice the amount of memory as the original iPad.

According to a note by Concord Securities analyst Ming-Chi Kuo and published by Apple Insider, Quanta rather than Honhai will be tasked with building the tablet.

Interestingly, it seems that it won't have a 3G connection for now.

It is not known whether the tablet will include cameras, expansion slots or ports or GPS. Kuo also notes that the tablet will run an older version of Google Android, although Amazon is said to have very heavily customised the open source software.

The total cost of manufacturing the tablet is expected to be around $180, which Kuo reckons, would allow Amazon to sell the tablet at cost price (around $199) rather than the expected $250.

The online retailer is also expected to launch a 10.1-inch tablet next year called Coyote which will compete directly with the iPad 3.