As you may know, rumors have circulated for months that Amazon is working on a 10-inch "Hollywood" tablet slated for a second-quarter 2012 launch. But just this week, new details have surfaced that suggest the online giant has opted to go with an 8.9-inch model instead.
According to sources close to DigiTimes, Chunghwa Picture Tubes and LG Display have started production for the new panels. Both companies are current suppliers of 7-inch panels being used in the Kindle Fire.
It's unknown whether the 8.9-inch model will outright replace the rumored 10-inch device or if it will stand alone as an intermediary product. Though the 10-inch tablet was said to include a quad-core processor, it's likely that we're months away from such cutting-edge tech coming to either the Kindle Fire or the Nook Tablet.
I wouldn't be surprised to see a stop-gap device released with hardware that answers the new Barnes & Noble tablet and then later a beefy, 10-inch model. Of course, much of this will depend on how well the Kindle Fire fares and whether consumers will want to spend an extra $50 for more hardware.
Should the Nook Tablet prove successful, it would make sense for Amazon to release something in a $249 to $299 price point with extra memory, storage, and a still-portable 8.9-inch display size.