US online giant, Amazon is planning to release its new tablet computer powered by Google's Android platform to take on Apple iPad as well as other devices running on Android.

The device comes with a 7-inch screen and 6GB of internal storage for books and applications. The tablet will have a custom Android interface with Android Webkit browser and a dock for displaying available books and movies.

The company is offering the Android applications storefront apart from a huge collection of multimedia content. This could allow the tablet to give direct competition to Apple's iTunes and App Store. Other manufacturers have not developed their multimedia hubs and Android manufacturers primarily rely on Google's Android Marketplace for apps.

Amazon is better placed than other manufactures that tried and failed to make a mark in the tablet computer market. The company also has a strong marketing presence in the market, which will allow it to attract more customers to the market.

Amazon's tablet computer will be priced at $250.