Amazon is set to take on the iPad, with suggestions that the company plans to release a tablet computer by October.
Amazon's tablet device will have a 9in screen, will run on Google's Android platform, and will not have a camera, sources told the Wall Street Journal. Production of the devices will be outsourced to a manufacturer in Asia, the paper was told.
The online retailer is the latest company to jostle for a share in the growing tablet market, with estimates from Gartner that tablet sales will reach 108 million in 2012.
Amazon also intends to introduce two updated versions of its Kindle e-reader later this year, one of which will have a touchscreen, the sources told the Wall Street Journal.
The announcement follows the companies' latest spat in March, when Apple sued Amazon over allegations that it had breached the trademark on the name "App Store".
Amazon also intends to beef up its UK operations, with the announcement that 900 temporary and permanent jobs will be created as online retail giant Amazon is set to open a new fulfilment centre in the UK.
In June, Google's chief executive, Eric Schmidt, said Google, Apple, Facebook and Amazon were all locked into a "platform war". These are the four biggest companies that are driving the "consumer revolution", he said.