The market is abuzz that Amazon is in the process of developing its own Android tablet. The rumors spread like forest fire, following a New York Times blogger, which highlighted that engineers of Amazon in its Lab 126 are ‘looking into building other gadgets [than Kindle] that it could sell to consumers’.

However, the blogger did not cite any sources, thereby giving way to speculations.

Post the news, no comments have been given by Amazon officials regarding its prototype efforts. But, it is anticipated that Amazon may venture into gadgets of music or movie players or a mobile phone, which could give head on competition to the market leader, Apple's iPhone, or the available Android phones that are supported by Google.

It is believed that besides Kindle e-reader, Amazon.com is considering developing prototypes of gadgets. As per the analysts, the recent development is well in tune with Amazon’s objective, since it is trying to compete at every level and on each aspect. It is believed that since Apple entered Amazon’s domain with iBookstore and the iPad tablet, it was indeed the right move taken by Amazon.

Though, the market is excited about the same, however, one analyst, Jack Gold of J. Gold Associates, is skeptical of Amazon’s move.

Gold said, “If all Amazon is doing is making a gadget to sell, why would they not just resell all the other devices available on the market from all the vendors that want to sell in the Amazon marketplace? But having a gadget plus services makes sense, following the Kindle example”.