Amazon tablet will 'completely disrupt the status quo'

If Amazon's rumored Android tablet ever indeed becomes a reality, it could quickly become one of the bestselling tablets on the market. That's the claims of Forrester Research analyst Sarah Rotman Epps, who expects the tablet to sell up to five million units in the fourth quarter of this year.

At that rate, sales of the Amazon tablet would surpass the 4.19 million iPads that Apple sold in the first full quarter of its availability from July through September 2010. Amazon would roughly be doing that in about two to three months.

Epps said that Amazon would need to sell the device below $300, something that has been rumored for some time. It's believed that the e-tailer could use the tablet as a "loss leader," selling it for less than it costs to manufacture in hopes to make up the loss in increased sales of content.

"Amazon’s quick ascension in the tablet market will completely disrupt the status quo," she argued.

The company's entrance onto the tablet scene could also have the effect of making Amazon the "iTunes of Android." Manufacturers could see partnering with the company as an easy way to provide content for its customers, since so far Google has no solid plans to do that itself.

Epps also believes the success of the Amazon tablet could also help the entire Android platform in attracting more application development. Currently about 100,000 apps are available in the app store said to take advantage of the iPad, whereas only 300 Android tablet apps exist.

"If Amazon’s Android-based tablet sells in the millions, Android will suddenly appear much more attractive to developers who have taken a wait-and-see approach," she says.