Inc. may begin shipment of a 7-inch tablet device in Oct. and a 10-inch tablet in 2012 according to a new report.

The DigiTimes this week said Amazon’s 7-inch tablet PC will be supplied by Quanta Computer and is expected to start shipping this Oct.

Meanwhile, a 10.1-inch tablet to be supplied by Foxconn Electronics will be produced in the first quarter of 2012.

Foxconn currently manufactures the popular Amazon Kindle e-reader.

Forrester Research Inc. this week said Inc. may sell up to five million tablets in the fourth quarter of 2011 should the company market a device at under $300 this fall.

Amazon is expected to enter the tablet market with a product said to be a few hundred dollars less than Apple Inc.’s iPad. It is expected to utilize Google Inc.’s Android OS.

The iPad, which currently dominates the tablet market at 30 million units sold, shipped 9.25 million units in the third quarter of 2011.

Market demand has been fickle for Android-based tablets. Products like the XOOM from Motorola Mobility Inc. and the Galaxy Tab from Samsung Group have failed to make a significant dent with consumers due to $400 to $600 price tags.

However, the clearance of HP Inc.’s TouchPad device to $99.00 has proven consumers will purchase a tablet if the price is right.

Ebay sales of the TouchPad have fetched $230 to $300 for the 16GB SKU and 32GB SKU. Analysts expect a tablet from Amazon to sell in the same price range.

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