10-inch version may follow in 2012 according to TechCrunch's hands-on scoop.
Speculation around Amazon's plans to sell its own-brand tablet have reached fever pitch, with US site TechCrunch claiming to have actually used a working model of the device, albeit only after promising not to take any photos of it.
According to the report, the tablet will be called simply Amazon Kindle, and will have a seven-inch capacitive touchscreen. The device's software will be based on Android but heavily customised with Amazon branding and functionality.
The price is tipped at $250 in the US, heavily undercutting the iPad, with services including Kindle e-books, Cloud Player music and movie streaming all to the fore. The device will also hook into Amazon's existing Android Appstore for apps and games.
The device is likely to have a strong tie-in to Amazon's online store for all kinds of products too. According to the Wall Street Journal, Amazon is redesigning its website to make it "easier to use and to navigate on a tablet computer"
Screenshots leaked in the last week had hinted at the new design, and while the revamp will ensure Amazon has a stronger mobile web presence on all tablets, it will certainly come in handy for the company's own slate.