Amazon unveiling new tablet to challenge iPad today

Amazon.com Inc. is expected to unveil Wednesday the latest -- and possibly biggest -- challenger to Apple Inc.'s dominant iPad tablet.

Few specifics are known about the tablet, and Amazon hasn't publicly acknowledged its existence, even in the invitation for an event to be held Wednesday. However, a tablet from the Seattle-based company is seen posing a threat to the iPad's dominance due to Amazon's strong media offerings, history of aggressive pricing and its ability to market the device on its popular website.

Among the features expected: touch-screen technology; a customized version of Google Inc.'s Android operating system; and access to Amazon's app store, streaming movies and TV shows. Some observers have speculated that the device could be priced below $300 -- a new iPad is $499 -- and could include Amazon Prime, the company's $79-per-year shipping and media service.

An Amazon spokeswoman didn't respond to a request for comment.

In a page lifted from Apple's playbook, Amazon distributed cryptic invitations -- containing nothing more than the company's name, an address, a date and time -- to a media event in New York. Reports that Amazon would launch a tablet to augment its popular Kindle e-reader have swirled for months.

Amazon already has established it can successfully market a piece of hardware. As Apple's iPad sets the bar for tablets, Amazon's Kindle is the de facto standard for dedicated e-readers. Citigroup has estimated the Kindle will contribute about 10% of Amazon's total revenue by next year, or more than $6 billion, even as the company lowers prices on the machine. 

Amazon unveiling new tablet to challenge iPad today