We have heard all along that Amazon is working on two tablets. We are expecting at least one of them to come out this fall, and to be priced as a loss leader to blow Apple out of the water. This will most likely be a seven inch model.
We know they are working on a 10.1-inch version as well, but it looks like it might not hit the scene until the 1st quarter 2012 according to Foxconn, the manufacturer of the device. We have heard the codename is Hollywood, and it could include NVIDIA’s Kal-El quad-core chip. If this is the case, it would be a big set back since ASUS is ready to go with the Kal-El chip in the follow up to the very successful Transformer this fall.
I still think that if Amazon comes out with a $249 tablet this fall as expected, sales will be through the roof. Ultimately the hardcores will be yearning for the “Hollywood,” but volume is where it’s at for Amazon. They have a lot to gain from their app store, music, video, and book distributions. With the 7-inch version priced right, it will produce the volume necessary to drive their digital business.