Take That, iPad 3: Amazon Prepping 4 Million Tablets For 2011

Now we know why Apple AAPL is so eager to release another iPad. Amazon AMZN, the current leader in e-readers and online merchandise, is building an army of tablets for 2011 – four million, to be exact. The news comes from DigiTimes (via Business Insider), which claims that the tablets will arrive in two formats: 7-inch and 10-inch. This ought to frustrate Steve Jobs, who complained about smaller tablets last fall, no doubt hoping to quash the scarce chance that one of them might actually usurp his own pride and joy. If this makes Jobs unhappy, wait till he hears this: the Amazon order is so big that the only other tablet requiring more supplies is the iPad 2. Interestingly, NVIDIA Corporation NVDA is said to be in charge of manufacturing the processor for Amazon's tablets (or shall we say processors? Wouldn't it make sense that the 10-inch version will be more powerful than the 7-inch model?). There aren't many confirmed details surrounding Amazon's entry into the tablet market, but one thing is for certain: this should be one very exciting Christmas. Follow me @LouisBedigian