Amazon Order 2 Million Touch Panels For Their Android Tablet

Amazon has stepped up their efforts in launching their Android powered tablet by placing an order for a reported 2 million touch panels. The e-commerce giant are looking to get a tablet of their own out on the market to compete with the big dogs like Apple and their iPad. As it stands things are looking promising for Amazon but many have their doubts and consider the whole project a massive gamble.

Amazon’s bulky order of touch screen panels for its own tablet looks risky but in fact could be a cautious move. Electric Pig has reported that the huge online retailer are looking to ship at least 4 million tablets by the end of 2011, so it looks like they have purchased half of their goal. Unless they are to place another order it looks as if they will see how the first 2 million sell before manufacturing and shipping more.

The Amazon Android tablet has been in the works for a while now, with the main project being confirmed a few months back. Amazon are targeting a launch towards the end of August or early September so that it gives consumers a few months to buy them all up before Thanksgiving and Christmas. The iPad 2 as well as its predecessor currently dominate the tablet market, but Android tablets are rapidly catching up.

It was rumoured that Amazon would be launching 2 different tablets, codenamed “Coyote” and “Hollywood, but now it looks like it will be a solo project. The biggest threat comes from Apple in a number of ways as the reputation of the iPad can at times cause a consumer to buy it over what it actually does compared to other tablets. eWeek also reports that Apple could pose another threat it terms of Amazon’s shipping.

There are 4 main components makers in the industry which are TPK Holdings, HannStar Display, Wintek and J Touch. Both TPK Holdings and Wintek supply Apple with their touch screen panels for the iPad and due to huge demand both companies look to be struggling with production as a result of massive orders from Apple. This will most likely have an effect on Amazon as the manufacturers may not be able to accommodate any orders for them. It is currently unknown which supplier Amazon has reportedly placed their order with as it comes from “industry sources”.

Amazon have a mammoth challenge ahead of them if they are to successfully compete with Apple, not only on sales but also on production. There is talk that Microsoft are also looking to delve into the tablet market with a model involving their upcoming Windows 8 OS. Also throw manufacturers like HTC, Motorola and Samsung into the mix who have high end tablets on the market and you have one big task on your hands. Are Amazon up to this very demanding challenge?