Amazon expected to unveil tablet next week

Amazon.com Inc, which revolutionized reading with its Kindle e-reader, is expected to unveil a tablet computer straightway week that analysts say will in all seriousness challenge Apple's market dominating iPad.

But analysts were confident that the world's largest Internet retailer will introduce its long-awaited tablet computer this year to expand in mobile commerce and sell more digital goods and services.

The tablet has been awaited as a strong competitor to Apple Inc's iPad. Apple has sold about 29 million of the devices since its launch in April 2010.

Marketing tool to build a relationship with clients

"It's a marketing tool to build a relationship with clients and sell them cloud services," said James McQuivey, an analyst with Forrester Technology.

It will be a 7 inch device with a full color, touch screen, run on Google's Android software and cost $250, the blog said, then below the price of the least expensive iPad.

The tablet could pose a major threat to Apple because of the Kindle's popularity and the movie and music services Amazon sells.

Several research companies like Innovation In Motion and Samsung have introduced tablets that sold poorly. Hewlett Packard Co announced recently it would abandon its tablet.