Amazon's upcoming tablets are expected to sell as many as 5 million units this fall. According to Forrester Research, Amazon could easily achieve this number as long as it prices its tablets below $300 and doesn't run into any kinks in its supply chain. And at that volume it would become the top competitor to Apple's iPad.
Apple has sold almost 30 million iPads since the device first launched in April of 2010. The competition from Android tablet manufacturers are still struggling to compete as Apple continues to claim the lion's share of the market. Apple is expected to dominate the tablet market through at least 2013.
A recent casualty in the tablet wars is the HP TouchPad with webOS, which will be discontinued after only about two short months of being on the market. The recent fire sale of the TouchPad for $99 each has successfully driven up demand and has prompted some to believe that Amazon may aggressively price their tablets to start. Sources have claimed that the Amazon tablet will be "hundreds less" than the entry-level iPad.
Amazon is expected to launch a 7-inch tablet codenamed "Coyote" and a 10-inch tablet codenamed "Hollywood" later this fall. The Hollywood is rumored to sport NVIDIA's Kal-El quad-core processor.