Posted by Greg Mills

The Washington Post/Bloomberg report that Amazon is planning to launch an Android tablet they bought from an unnamed manufacturer. The screen size is expected to be just a bit smaller than iPad, but in color. The price point of the new tablet hasn’t been decided or disclosed yet, but it has to be a bargain to even compete with iPad, which is very hard to do.

The sources also have claimed Amazon has an in-house design in the works for an Amazon tablet computer but won’t have that product ready to launch until next year.

Amazon is expected to sell the new Android Pad at a loss or near break even. The product is to support Amazon’s digital download business related to books, music, Android apps and movies. The business model of discounting a tablet that is tied down to one download source is sort of like the Kindle. Will people buy the higher end package that has so many strings attached?