Back in June, Wolfgang Gruener laid out a case why an Amazon tablet makes sense and why Amazon may be the strongest rival for Apple. Amazon also seems to be fairly confident that it can sell lots of tablets.
According to Digitimes (and VentureBeat), Amazon apparently thinks that a production volume of 1 - 1.2 million units this quarter is reasonable. It's not a shocker for Apple yet: all Android tablets have sold in relatively measly numbers so far. RIM's Playbook was a more successful version of a tablet (with sales of 500,000 units last quarter) and if Amazon can really sell 1 million tablets, we finally could be getting a true alternative to the iPad. Digitimes previously reported that Amazons targets a 2011 shipment volume of about 3.5 million to 4 million tablets this year.
There is no information what the Amazon tablet will be. Rumor has it that Amazon will offer at least two versions based on Android that will also compete with the Nook Color. However, the Amazon tablet is likely to be considerably more expensive and hit the $500 mark for a Wi-Fi only version. If it maintains the usability of high-end Kindle and remains a fantastic eBook reader while offering the additional value of a modern web tablet, Amazon could be offering a powerful contender.