Google Tablet Targets Amazon Kindle Fire – Sparking Family Fight [Report]

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There’s nothing like a family fight and one may be brewing between Android creator Google and the Kindle Fire, one of the few Android-based tablets able to lay a finger on the iPad’s overwhelming success. Although unconfirmed, a report suggests the Internet giant is planning to unveil its own tablet in early 2012 that could undercut Amazon’s price advantage. It brings tears of joy to the eyes of Apple fans.

The report from Taiwan-based industry publication DigiTimes, cites supply chain sources that Google is preparing a 7-inch tablet powered by the Android 4.0, the latest version of the mobile software tailored just tablets. According to the report, suppliers “believe that Google, instead of Apple, may actually be targeting Amazon’s 7-inch Kindle Fire as its major competitor.”

In a bit of the left hand not knowing what the right hand is doing, Google’s PR machine claims such a plan is news to the Mountain View, Calif. firm. However, just last month, Google Chairman Eric Schmidt implied his company would unveil a “tablet of the highest quality” within six months.

But there remains a number of questions. Foremost, how can Google produce a high-quality tablet and undercut the Kindle Fire’s $199 price? Secondly, Google doesn’t have the ecosystem that allows Amazon to produce a $199 device and make up for the lost profit by selling cloud services, e-books and other items? Although Google has some e-book and music options, they are nowhere near as advanced as either Amazon or as deep as Apple’s.

All of which brings us to the third question: should DigiTimes even be believed? Until we get some confirmation, the report is more suited to the role of interesting rumor.