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iPad 3 to face competition from Amazon?

Looking to compete with Apple’s iPad and more importantly, the upcoming iPad 3; Amazon could reportedly be introducing a tablet as early as this October. That tablet is rumored to be offered at a price around $300 or lower.
Rumors have been relatively quiet about Amazon’s tablet plans, and you may remember when they first started back in May about the code name “Hollywood” tablet aiming to best the iPad 3 before it even releases.
As we recently saw with the HP TouchPad, sales skyrocketed during the liquidation meaning that price does still matter. Apple has remained comfy atop the tablet market as they continue to be the global leader. Most of their competitors have introduced tablets around a similar price point as the iPad, and have continued to find it difficult to compete.
On the other end of the spectrum there have been cheaply priced tablets, but their quality and usability has suffered and made them not worth the purchase either. With that said, Amazon is looking to introduce their first tablet later this year in October well before the expected iPad 3 release date yet when production is set to begin. If the quality matches the price, many analysts are speculating that Amazon has what it takes to compete; especially if they stick right around the $300 price point.

Apple iPad 3 vs. Amazon’s Android “Hollywood Tablet” 2012

Just in time for holiday sales, the 7-inch Amazon tablet manufactured by Quanta Computer will be the tablet available in October. I believe this is the past rumored “Coyote” tablet which is going to have similar specs to the iPad 2 and be the lesser of the two introduced by Amazon.
According to IBTimes, Mass production of their other 10.1 inch version, likely the “Hollywood” tablet, will begin in Q1 2012 with Foxconn. If this tablet is going to cost well more than the 7” version then Amazon may run into the same difficulties faced by other failed attempts at besting Apple.
With a strong following behind their e-book reader (also manufactured by Foxconn), Amazon has experienced the highest sales in that market, and hopes to make a stab at Apple in the tablet industry. The Amazon Tablet will be running on Google’s Android OS; and enjoy Amazon’s android app store which is already fully functional.
Apple however, did say that they have a new cost structure ahead to remain competitive, which may bring the iPad 3 to the market at a lower launch price than the current $499 for a 16GB iPad 2.