In a recent interview with Consumer Reports, Amazon’s CEO, Jeff Bezo’s, was asked if Amazon would make a tablet someday. He casually responded with the comment “stay tuned” but gave no other specific details about a product of this nature. He basically confirmed, however, that something like this was in the works. With Jeff Bezo’s confession, it has become clear that Amazon is planning to enter the tablet market soon.

When Amazon does something, it always does it big and with the tablet market already overcrowded, other manufacturers can expect some real stiff competition as soon as Amazon brings out its tablets.Industry sources have confirmed that Amazon is planning a year end release of two tablets. A dual core ‘Coyote’ and a Quad core ‘Holltyood’.

What to expect?

Amazon understands the whole marketplace, to device system, and has been doing it better than anyone else with eBooks. This is the primary reason that we believe and as has been confirmed by Jeff Bezo, that the reading experience would be at the center of the design of the two tablets. We can also expect the two tablets to be a Kindle for movies (Kindle is an e-book reader manufactured by Amazon) as now they have the Cloud Player and Cloud Storage already set up, and could use this as an efficient relay from any Movie Marketplace to a Movie-centered tablet. We also know that Amazon tends to keep its devices inexpensive and makes their profit through high margin downloads, so we can expect a similar thing with the two upcoming tablets.

Will it work?

Yes, the whole movie market thing will work well and would also start a commotion in the tablet maret. Netflix has the downloadable and instantly streamed movie market cornered, but some have suggested that the selection is poor, and in some cases, so is the picture quality. An Amazon tablet would be able to deliver movies through a marketplace as efficiently as the Kindle Market does for the Kindle.

Also, even though the tablet market is currently overcrowded with some very compelling devices, just bringing out tablet hardware without a connection to great software and especially services is a non-starter for most of the manufacturers. In fact, of the 100 or so tablets that will flood the market this year, only four or five will end up being real contenders and those will be the tablets that employ valuable, easy to use services as part of their offering. With Amazon planning something like this, we can expect them to come to market with a serious contender.

What about the OS and the procesor?

Reports are abuzz that ‘Coyote’ and ‘Hollywood’ will come loaded with the latest Android OS, ‘Ice Cream Sandwich’. Nothing is sure as of yet as Amazon has made no announcements. Until Amazon comes clean with regards to its official plans, all we can do is listen to rumors and speculate.

Another thing that we can say for sure is that ‘Coyote’, which is the lower priced tablet, will come loaded with a Tegra 2 processor while ‘Hollywood’ will have the substantially (5 times!) more powerful Tegra 3 processor on board. I would rather call Tegra 3 a SUPER processor considering the 5 times performance boost it would give over the already fast Tegra 2.

When is it coming?

Since ‘Hollywood’ will come with Tegra 3, we can expect both the tablets to come out by early fall, shortly after we expect an official  Tegra 3 release. There is also possibility that Amazon brings ‘Coyote’ earlier and waits to release ‘Hollywood’. This would not only help them to get Tegra 3 on board, but also help them to analyse the consumer response towards Amazon tablets so that when they release ‘Hollywood’, it can be pretweaked for absolute tablet domination, and be an absolute stunner.

I am eager to see what Amazon has in store. Are you?