NEW YORK ( TheStreet) -- Amazon's ( AMZN - Get Report) tablet -- dubbed by some as the "super Kindle" -- is set to arrive just in time to spoil Christmas for the PC makers and possibly Apple ( AAPL - Get Report).

The Google ( GOOG - Get Report) Android-powered, 10-inch Amazon tablet is expected to launch in October, according to The Wall Street Journal. If true, the Amazon tablet will expand on the Kindle's e-reader franchise and will likely carry a price small enough to undercut the popular iPad.

Helping confirm the news, Taiwan's DigiTimes reports that contract manufacturing giant Foxconn has received orders to produce the Amazon tablet. Foxconn also makes the Kindle, the iPad and the iPhone.

The move comes soon after e-reader rivals like Sony ( SNE) and Barnes & Noble ( BKS) introduced their own color-screen Android offerings, which reach beyond books toward video and music.

As one of the largest digital media sellers on the Internet, Amazon will hope the tablet can do for music and videos what the Kindle did for e-books.

With its new Cloud Drive network storage locker service, Amazon will no doubt sell the tablet as a media player, a low-cost conduit to its enormous media store.

Price is key for Amazon. With the Apple iPad selling for $500 and up, the tablet market is wide open at the $250 price range. Barnes & Noble's Nook Color, for example, sells for $250.

The rise of the tablet segment has helped stunt the growth of PC sales this year, and with an invasion of even cheaper Android models, the trend will likely continue.

According to Gartner, second-quarter PC sales fell 5.6% below year-ago levels, due largely to increased sales of tablets like the iPad.

While Amazon has enjoyed tremendous success with sales of the single-purpose Kindle, analysts say the media player/tablet market is a completely different category that already has its established leader in Apple.

"This will be a tougher battle than what Kindle faced," said one analyst, highlighting the difference between Amazon's strength in e-readers and the more intensive competition from Apple, Samsung and Motorola ( MMI) in tablets.

The risk for Amazon investors is whether the company can sell enough music and videos to offset the cost of selling a low-margin tablet.

Amazon shares were up less than 1% to $215.42 in early trading Thursday.

--Written by Scott Moritz in New York.

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