Internet is awash with reports that world’s most popular online retailer Amazon is drawing nearer to launch its own tablet computer.

According to Taiwanese newspaper Digitimes, Amazon has placed an order with a Taiwan-based manufacturer, called Quanta Computer, to produce an Android tablet that will reportedly be shipped in the second half of this year.

The size of the contract is estimated to be in the $3.5 billion range, to produce 700,000 to 800,000 units.

Value added services, such as Amazon Appstore, Amazon Video, Amazon Cloud Player and Amazon MP3, for Amazon’s potential tablet are already present.

However, nothing is clear about the form of Android operating system and the hardware specs that would come with Amazon’s much-rumored tablet.

Reports also suggest that Amazon has plans to drop the prices of its Kindle e-reader to allow it to maintain its position after the launch of its potential tablet.

Amazon will bank on its extensive content assets to position the tablet against Apple’s iPad, which currently dominates the tablet market.