At the beginning of the month we reported that Amazon seems to be moving into the tablet space with an order for hundreds of thousands of touchscreens per month. There is now more evidence that the Kindle manufacturer is looking specifically to do an Android tablet due to the processors rumored to be included. We think you will be smiling very soon.

Roadrunner Stew: Water, Roadrunner, Diced Apple 

According to a source from Boy Genius Report: Amazon will be releasing two tablets potentially as earlier as second-half 2011. Their entry-level model, “Coyote”, will contain an NVIDIA dual-core Tegra 2 which for those following the tablet space knows that is not an entry-level part. Their higher-up model, "Hollywood", is said to contain NVIDIA’s upcoming Kal-El, the quad-core successor to the Tegra 2 with an integrated GPU reportedly 5-fold faster than those found on the Tegra 2.
 
It should be noted that an entry-level tablet for Amazon does not necessarily suggest what price Amazon would be aiming for. Amazon could still have their Kindle line as their true entry-level product which would allow them to skip straight to the higher performing Tegra 2 and Kal-El parts for their actual tablet line as they could point to the Kindle for those who want less than a Tegra 2. So if you happen to be looking for an Android tablet and can wait a few months you might wish to hold off and see what wily Amazon is cooking up.