|Apple's iPad 2|
The device could challenge the iPad. It is expected to have a nine-inch screen and will run on Google's Android operating system.
Amazon customers will be able to watch videos, read ebooks and listen to music purchased or rented from Amazon. It is not expected to have a camera.
The new tablet will intensify the competition between Amazon and Apple, both of which are fighting for customers for their own digital books, music and movies.
Amazon is also releasing two new versions of the Kindle. One will have a touch-screen, the other will not. It will be an updated, cheaper version of the current Kindle model.
You can read more about it in this article from The Wall Street Journal.