Amazon may indeed be planning to leverage its digital content store of movies, TV, music, e-books, and Android apps to help sell a full-fledged tablet of its own. A new report suggests that Taiwanese manufacture Quanta has received orders from Amazon to begin building as many as 700,000-800,000 tablet devices per month to begin shipping in the second half of this year.
The information comes from sources inside "upstream component makers" that told DigiTimes that Amazon's business could add up to $3.5 billion to Quanta's revenue for 2011. While DigiTimes doesn't have the best record on such advanced device rumors, Quanta already builds RIM's PlayBook, which we noted had excellent build quality. This particular rumor also gels with earlier analysis by Forrester researcher Sarah Rotman, who suggested that Amazon was in the best position to compete with Apple in the tablet space if it could put together decent hardware with a color screen.