Rumor has it that Amazon is planning an Android based tablet, with a price somewhere between $249 and $299. Given the failure of HP’s entry into the tablet space with the WebOS powered TouchPad, Amazon may be gambling in a market currently dominated by Apple and it’s iPad. However, given Amazon already is the leader in eBooks and eReader hardware with it’s wildly successful Kindle, this could be the stepping stone to further success with a more fully featured tablet, rather than the one trick eReader.
To be successful the price could make or break Amazon’s new tablet – HP cancelled their TouchPad because it wasn’t selling, but when the price was lowered to $99 to clear stock it flew off the shelves. This must have been some surprise to HP since more recently an HP exec has said that they may be thinking of resurrecting the dead device for another attempt, presumably starting off at a lower price point.