Rumor: Amazon tablet to have very low price

If there is one lesson we can learn about the failed HP TouchPad, its that people will flock to get even a poorly reviewed tablet device if it is priced cheaply. Now there's a new rumor that Amazon's still unannounced tablet PC device could be looking to undercut the price of Apple's popular iPad tablet by a significant amount. The New York Post reports via unnamed sources that the tablet could sell for "hundreds less" than the cheapest iPad, the 16 GB WiFi only model that sells for $499. The tablet itself is scheduled to go on sale in late September or early October, according to the report.

Amazon CEO Jeff Bezos has all but confirmed in the past that the company is preparing to launch a tablet PC product which should sell alongside Amazon's popular Kindle eReader. Previous rumors about the tablet have suggested it will be using Google's Android operating system and a nine inch screen. it is also supposed to have a processor made by Nvidia running things inside. Other more outrageous rumors have suggested that Amazon is creating a dual-screen tablet with a touch screen on one side and a Kindle-like eReader screen on the other side.

Many analysts have speculated that Amazon's tablet device, when it finally launches, will be the first real sales threat to the iPad. Some of this speculation is due in part to Amazon's success with the Kindle which has continued to sell well even with the iPad's own sales numbers.

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