Rumors about Amazon launching a tablet computer have been around since a while. We are actually already at the point that it is a sure thing that Amazon will launch an iPad competitor. If you need more proof, Jeff Bezos said in an interview with Consumer Reports when asked about his tablet plans: "Stay tuned."
Amazon has the eco-system to compete with the Apple iPad. The Amazon Tablet is likely to run Android. Amazon has already launched their own Android app market. Amazon runs massive cloud services. Everything is in place. The only thing missing is the tablet hardware and software.
Jeff Bezos did not reveal any details about the Amazon Tablet. It is though clear that the Kindle will continue to exist. A new device would be in addition. Barnes & Noble strategy is possibly different. We expect a new Nook that will likely be a full blown tablet on May 24.