Apple iPad 2 chokes Amazon tablets (Coyote/Hollywood) before the battle begins

Apple iPad 2, the king of the current tablet war, has choked its upcoming competitor Amazon tablets by blockading them even before the battle has begun.

Rumors, which have been stirring the tablet market for weeks, are saying that Amazon is on its way to present two tablets this fall which have codenames “Coyote” and “Hollywood”. According to DigiTimes, the company has placed an initial order of around 700,000 - 800,000 devices with Quanta Computer.

The entry level Coyote is supposed to have Nvidia’s dual-core Tegra 2 mobile platform while the higher-end Hollywood is to have quad-core “Kal-Ed” chip. Both devices will be equipped with Google’s Android operating system. Detwiler Fenton reported that the device could also come with free streaming video service as well.

However, the aspiring new iPad 2 challengers are already facing difficulty as Apple iPad production is causing troubles for Amazon to come up with its tablets in time. DigiTimes has reported that Amazon was looking to produce 1.5-2 million tablets by September.

According to the Taiwanese journal, touch panel makers are reluctant to commit themselves to Amazon tablets as Apple’s demand increased in the third quarter of 2011 fiscal year.

“Wintek has also landed a fair amount of orders from Apple recently and will see its revenues edge higher in the third quarter. However, the company also revealed that its production schedule will become tight in the second half of the year and it may be difficult for the company to accommodate orders from Amazon,” DigiTimes reported.

In addition, TPK, another supplier of touch modules for iPad, is said to have been reluctant to make a comment on its supply for Amazon.

AppleInsider has reported that Apple has booked 60 percent of world’s touch panel capacity, causing “second tier players” to be “pushed out of the market entirely due to a lack of glass capacitive touch panels”.

However, Amazon tablets are not the only ones to suffer from the success of iPad 2. RIM’s BlackBerry PlayBook has also been reportedly delayed for months due to the success of iPad 2, according to AppleInsider.

Is the IT giant strategically cutting off its rivals before they even have a chance to fight? Or is it simply a side-effect of the iPad's huge success?