A new report by Digitimes has given rise to heightened speculation that Amazon is working on an Android tablet, to replace its Kindle ebook reader. According to the report, Amazon has already placed orders with its OEM partner, Quanta Computer, for its upcoming Android tablet. The touch panels for the tablet will be provided by E Ink Holdings, and will support Fringe Field Switching technology.
Amazon expects the sales to touch 700,000 to 800,000 units during the peak season. The Amazon Kindle has been a very popular device, but since the launch of the iPad and the new Android tablets, sales might have been slowing, as more and more users prefer a multi-functional device like a tablet, over an ebook reader. The Nook Color, an Android powered ebook reader has seen huge sales, thanks to its low pricing and its ability to double up as an Android tablet.
With the launch of the new Amazon Android tablet, Amazon can probably capture a large share of the Android tablet space and also sell more ebooks. Amazon recently launched an Android app store. It may also start offering music and videos, leveraging its new cloud locker service. It might be priced around the $200 range, and may be an ad-supported version, like the new $114 Kindle it launched recently.