Rumors of an imminent tablet device from Amazon have solidified to the point where it would be shocking if one didn't appear by fall, but Taiwanese components suppliers are now saying demand from Apple for iPad parts could make it difficult for Amazon to get many of its own tablets built on schedule.
Touch panel makers TPK Holdings, Wintek, HannStar Display, and J Touch expect orders from Amazon for new tablets that are reportedly codenamed Coyote and Hollywood, according to a DigiTimes report published Thursday.
One of Amazon's rumored tablets, probably Hollywood, will reportedly have a 10-inch color screen, run Google's Android mobile operating system, and sport a more robust processor than the one expected to power a color screen Kindle ereader that the company is also rumored to be planning before the end of 2011.
Amazon is eyeing a September date for assembly of its first tablets and could be looking to put together between 1.5 and two million units, the Taiwanese tech journal reported, citing unnamed industry sources.
That figure could just represent Amazon's first batch of tablets for 2011—DigiTimes reported last week that the company is targeting global sales of four million units for the year. The earlier report, which also cited unnamed sources, put a release date for the rumored Amazon tablet at around Thanksgiving.
But industry sources were cited as saying that TPK and Wintek could max out their capacity due to the recent placement of higher orders from Apple for the iPad, which is the runaway leader in the consumer tablet market thus far. That's made both components suppliers "reluctant to make a commitment to supplying touch panels to Amazon," the journal reported.
If Amazon's 10-inch tablet does see the light of day this year, it could be priced at around $400, with a temporarily free streaming video service bundled in as a deal sweetener, according to an investment house research report from earlier this month.
Amazon could also be planning to slash prices for its Kindles when it enters the tablet market, according to reports. If it does release a tablet, Amazon would certainly be entering a crowded market—in addition to Apple, competitors like Motorola, Samsung, Acer, Asus, Hewlett-Packard, and Research in Motion all have consumer tablets on offer.