Amazon tablet will be ready by Christmas

The dark satanic rumour mill has manufactured a hell on earth yarn which claims that the online book peddler Amazon could launch a 10-inch and or 7-inch tablet in time for Christmas.

According to Eweek, Amazon wants to get one Android tablet out in time for the holiday 2011 season.

The Huggie Bear in this case is Creative Strategies analyst Tim Bajarin, who said he had been chatting to sources Tapiei.

He told Eweek that Amazon will release a 10-inch tablet, and possibly a 7-inch tablet later this year.

It will be moving into a market crowded by the Apple’s iPad, the Motorola Xoom and Samsung Galaxy Tab slates, Research in Motion’s Blackberry PlayBook, the HP TouchPad.

Bajarin said that the Amazon tablet will have an LCD screen, support Adobe Flash and run an Nvidia Tegra quad-core chip.

Bajarin’s rumour gathering comes hard on the heels of Amazon CEO Jeff Bezos telling punters to “stay tuned” on the topic of an Amazon tablet. We named Quanta as the supplier of tablets to Amazon.

Bajarin said a tablet device be similar to the Nook and the Galaxy Tab. Sadly Amazon has had to reject a screen that could switch between the black and white E Ink-like display because it will not be ready until early 2013.

The analyst claims that the 7-inch tablet to be priced at $349, with a 10-inch model offered for $449. This will be the mainstream tablet which has come out at a reasonable price. It will undercut the entry-level iPad by $50 and can do a bit more.

Amazon seems confident about entering the tablet market thanks to having its own app store with its content and storage, he said.

It could become Apple’s toughest competitor to date, Bajarin added.