Given the success of Android in the smartphone market, we’ve been surprised, frankly, that not one of the tablets powered by Google’s OS has been able to make the iPad so much as flinch; iPad continues its dominance in the tablet space as surely as if it were the only available option.

But this reality won’t be last. Eventually, a viable competitor will emerge.   So, could Amazon be the company to finally offer an acceptable alternative, at least from consumers’ standpoint, to Apple’s iPad?

For months there have been rumblings that the retailer would, building on its success in the eReader market, release its own tablet device.  And for several reasons, Amazon might just stand the best chance of challenging iPad.  But what exactly would such a tablet offer? Would it feature a color eInk touchscreen (unlikely), an LCD-eInk hybrid (also questionable), an entirely new display technology, or simply a color LCD touchscreen like the Nook Color and other current tablets?  What software would it run? How much would it cost?

We don’t know the answer to any of these questions, but according to DigiTimes, Amazon does indeed have a tablet in the works, and has tapped Quanta Computer to begin producing the device en masse in the near future.

While it’s possible Amazon will introduce its own tablet OS, we doubt this very much.  It’s far more likely they’ll adapt an existing operating system like Android, for the tablet.  And it’s a fait accompli that one of the main selling points of such a device would be its tight integration with the Kindle eBook store, Amazon MP3, and Amazon Instant Video.

As we’ve stated many, many times, to effectively compete with the iPad, alternatives must best the tablet on several fronts – most importantly price -  and will need to offer a user experience second to none.  Motorola, Samsung, RIM, and other hardware makers who’ve gone after the iPad have failed to outdo Apple’s tablet in any meaningful way, which has kept their sales anemic, even in the face of the tablet’s meteoric rise.  It seems unlikely that Amazon would make the same mistakes if they’ve decided to through their hat in the ring.

You’ll be hearing more about this as the year unfolds.  Bet on it.