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Amazon tablet to stream videos

The new Kindle tablet will be powered by a better processor than is being used in the smaller Kindle e-book reader. Its price is expected to be attractive enough to help it compete with the iPad.

There are reports of Amazon releasing a 10 inch colour Kindle tablet that will allow users to stream videos. These tablets are likely to be priced at about $400 (or Rs 18,000), according to a report released by investment firm Detwiler Fenton.

The Amazon tablet has been code named Hollywood and it will initially offer a free promotional video service to its users.

The new Kindle tablet will be powered by a better processor than is being used in the smaller Kindle e-book reader. E-book readers are facing some real tough competition from the iPad, but Amazon’s device is expected to be cheap enough to compete with Apple’s iPad. At the same time, the Amazon tablet may end up putting more pressure on the Motorola Xoom and BlackBerry PlayBook from Research In Motion.

Rumours about Amazon developing a tablet have already been around for quite some time, but this time reports suggest the new tablet will be a colour Kindle with the ability to stream video as well.

The investment firm’s report says, “Colour e-readers in our opinion will take the majority of the tablet market share beneath the iPad because of price and content advantages. The remaining niche of tablets will be fought over by a growing number of vendors including the Chinese OEMs.”

Amazon seems to be positioning its tablet between usual tablets and Barnes & Noble’s Nook Color.

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