According to a report by the New York Post, Amazon is planning to introduce a line of tablet devices to compete with the iPad. The speculated release date is for late September or early October (which is suspiciously close to the rumored release of the iPhone 5). The tablet will be priced “hundreds less” than Apple’s offering, which, as the recent TouchPad fire sale has shown, is a killer selling point. Since Apple has such a commanding lead on the tablet market, manufacturers have an extremely difficult time producing competitively priced devices due to supply shortages. As noted by the NYP, Amazon is willing to operate at a loss in order to build a customer base who will make up for lost revenue with digital sales.
Amazon could be the one company who is able to compete with Apple in the tablet market, though it will be a steep uphill battle.

Source : iFans