Amazon looks set to launch a tablet device later this year, according to industry sources.
The online retailer - which has enjoyed considerable success with its Kindle eBook readers - has placed an order for millions of touchscreens, according to a report on DigiTimes. The screens will reportedly use Fringe Field Switching (FFS) technology, which offers wide viewing angles and a broad colour gamut.
Amazon reportedly expects to ship up to 800,000 devices a month, according to the report.
Last month, CRN reported that Amazon appeared to be readying a colour version of the Kindle, based on Google's Android operating system. It's not clear whether this is the same device or a separate development altogether.
However, DigiTimes suggests that Amazon will position the tablet as a premium device, while making the Kindle even cheaper.
"Amazon internally plans to reduce Kindle's market price to attract consumer demand from the education and consumer market, while will push [sic] the tablet PC using its advantage in software and content resources to challenge the iPad 2," the report claims.
Amazon was unavailable for comment at the time of publication.