The tablet allegedly will be called the Kindle Fire. It will have a 7-inch back-lit screen and run a customized version of Android developed by Amazon, according to the news blog TechCrunch.
The Amazon tablet could offer access to latest types of multimedia books and graphic novels from the Amazon store.
Amazon undeniably wanted to differentiate the Fire from Kindle e-readers already on sale from the retailer and hopes to triumph big with holiday shoppers when it starts shipping in November, TechCrunch said.
Initially, unnamed sources indicated a $250 price tag, although now TechCrunch said that device may retail for $300, perhaps with an Amazon Prime subscription thrown in.