Just this Thursday The New York Post reported that Amazon is working on a tablet that will cost “hundreds less” than Apple’s $499 iPad 2. This news was cited to come from an anonymous source that is close to the matter. We have heard plenty about this tablet before, but this seems like some of the best news yet. The source reported that the tablet should see the lime-light by September or October. BGR previously shared a rumor that the device will come with two versions, both running Android of course. The first version will have a dual core processor and be the cheaper lower-end model, while the quad core alternative will appease the higher-end market.
Look out for a tablet with Amazon's sticker on it coming our way soon.
Honestly, coming out this far down the road after the Nook Color (which is currently sitting on my desk) I doubt there will be much competition, unless these tablets are locked down tighter than the Droid 2 was. Maybe B&N's next device can compete, but the single core in the NC is starting to show its age when running newer apps and games.