Rumor: Amazon Unveiling Android Powered Tablet PC on Wednesday

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Amazon.com has slated a news conference for Wednesday, and media speculation focuses on the prospect that the Internet retailing major will unveil a tablet computer to compete with Apple Inc.s market-dominating iPad. A new Kindle tablet would combine the retailers prominent electronic-book reader with connection to Amazons offerings of MP3 music and digital videos. And the media talk says the tablet will run on Google’s Android operating system, which means access to the Android applications at Amazons app store. The Wall Street Journals sources say the new tablet will have a roughly 9-inch screen; other reports say a 7-inch or 10-inch display is likely. Wednesdays event is scheduled for 10 a.m. EDT. Should Apple be worried with this announcement right before the holiday?

Apple iPad

Early this month, TechCrunch.com reported that the Kindle tablet will have a 7-inch full-color screen and start at $250, half the cost of the cheapest iPad. Other analysts talk about $300 or less, reports say. The argument for the aggressively low pricing, reports say, is that the new tablet will drive sales of Amazons digital content and everyday goods. PCMag.com called the Amazon tablet a potential portable web store.

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