Amazon tablet due later this year, report claims

Online retail giant Amazon is set to release its tablet computer later this year, and at a much cheaper price than the iPad, according to a new report from TechCrunch.

The report claims the seven-inch tablet, which runs on a single core processor, has 6GB of internal storage and is being designed around services that operate in the cloud, is said to be priced at just $US250.

The rumour comes after the massive discount for the discontinued HP TouchPad sparked a massive firesale for the device, and fuels further discussion about pricing points for tablet computers and at what point they stop being effective.

The report also claims that Amazon will use its Prime service in conjunction with the tablet, and that it is using a version of the Android operating system that it has customised.

TechCrunch also writes that a 10 inch version of the tablet will only be released if the first sells enough units.