Amazon, the world's largest online store, plans to sell as many as four million of its tablets this year, according to a rumour published by a web-site. At present the company is ordering components for its media slates from various suppliers, which means that Amazon has already finalized design of its tablet or tablets.

Amazon is presently the second largest buyer of tablet components after Apple with the plan to sell four million of its slates in 2011, according to a market rumour published by DigiTimes web-site. Based on the report, Amazon plans to release two tablets, not one, with 7" and 10" touch-screens, this year, targeting different market segments.

The media tablet(s) by Amazon will be based on Nvidia Tegra 2 system-on-chip. Among suppliers of other components are Wintek, CPT, J Touch, Ili Technologies, Novatek, Capella, Sitronix and Richtek. As reported, the device will be based on Google Android.

Selling four million tablets in calendar 2011 is a very optimistic plan given limited success of other Android-based tablets as well as massive popularity of Apple iPad. If such a plan exists, then it is probable that Amazon not only has strong ideas how to promote the device, but also intends to set rather aggressive pricing and launch a massive advertising campaign.

The introduction of Google Android-based tablet by Amazon clearly means that the company not only follows its competitor Barnes & Noble, which released its Android-based Nook Color electronic-book reader last year, but plans to compete against Apple iPad, Motorola Xoom, Samsung Galaxy Tab and other popular slates.

It should be noted that the introduction of a tablet will inevitably slowdown sales of Amazon Kindle, which is, according to the company, the best selling device at Amazon.com ever. The company will have to clearly separate Kindle e-book reader and tablet in terms of price and services in order to maximize sales.

Amazon is the largest retailer of books, CDs, DVDs, Blu-rays and other media. But as sales of physical media declines and popularity of digital content increases, Amazon not only needs digital services to deliver content in electronic form, but also an ecosystem where to deliver. So far, the company has tried to build that eco-system using apps for third-party devices as well as by providing its own electronic book reader called Kindle. But in order to boost sales of movies and music, Amazon clearly needs to release its own media tablet.

Amazon did not comment on the news-story.

Tags: Amazong, Kindle, Apple, iPad, Android, Google, E-Book