Remember that Android-based Kindle tablet Amazon’s been working on? According to reports citing an anonymous source, and when it launches, it’ll cost as little as $299.

The New York Post writes:

Amazon is poised to enter the tablet fray with an Android-powered tablet in late September or October, a source with knowledge of the plans said yesterday. The device will sell for hundreds less than the entry-point $499 iPad, a feat few tablet makers have accomplished, the source said.

Honestly, this just reads like a regurgitation of earlier reports. In fact, we reported months ago that Amazon’s Kindle tablet would likely be released in September for a cheap price.

In fact, according to earlier rumors, Amazon won’t release just one tablet. Instead, they’ll release a 7-inch tablet powered by an NVIDIA Tegra 2 processor, and a 1-inch version running the quad-core Tegra T30. It will also probably run Amazon’s own custom fork of Android, and only support Amazon’s own Appstore for Android.

Amazon’s going to punch hard when they release their first tablet: Amazon apparently intends on shipping 5 million tablets this year.

To be honest, if anyone can make a dent against Apple in the tablet market, it’s probably Amazon. I’ll be interested in seeing how well this first Kindle tablet does.