Amazon is looking to release an iPad 2 rival in the second half of 2011, with the e-tailer putting in a massive OEM order to Quanta Computers.
This is according to DigiTimes who notes that the new device is likely to come with Fringe Field Switching (FFS) technology and and electrophoretic display (EPD) and will have its touchscreen created by E Ink Holdings.
As all of these technologies are pointing to another (possibly colour and definitely touchscreen) e-reader launch, it will be interesting to see if this is a true rival to the iPad 2.
According to the report, 700,000-800,000 monthly units have been ordered and should be shipping in the latter half of 2011.
From e-reader to tablet
Amazon revolutionised the ebook market with the Amazon Kindle, which has been the company's best-selling device since launch.
But with all its success, the e-reader is no match for the iPad 2, so Amazon will be hoping its un-yet-named tablet will make a dent in the iPad's sales or at least more of an impression that the Galaxy Tab and other rivals.
Alongside the tablet's launch it is thought that Amazon will reduce the price of the Kindle.
For Quanta, the order is a huge money maker. DigiTimes believes that the contracts could be worth as much as £2 billion.