Now, an August or September release date for these Amazon tablets, citing component makers in Taiwan. Amazon wants to sell at least 4 million of the devices worldwide this year, the sources say, and is timing the launch for the holiday shopping season.

Amazon hasn't released much official information on its tablet plans, although Amazon CEO Jeff Bezos did tell Consumer Reports to "" when questioned directly on the matter in May.

that Amazon will launch an entry-level tablet with a dual-core processor and a premium tablet with a quad-core processor. The tablets will likely provide easy access to Amazon's digital stores for e-books, movies, music, and Android apps. Amazon may also throw in as promotional offering.

An Amazon tablet would be because the company already has all the pieces it needs to compete directly with Apple's iPad. Amazon can rely on content sales to generate additional revenue--and thus, lower the cost of hardware--and has built-in promotion and distribution through its online retail store. Amazon could also partner with brick-and-mortar retailers for in-store sales, as it has with the Kindle.