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Word on the street is that books retailer Barnes & Noble will be releasing a new e-reader device powered by Android Honeycomb this month, reports Tom’s Hardware Guide.

Wednesday book retailer Barnes & Noble told analysts and investors that it’s slated to reveal a new e-reader later on this month. The announcement arrives just over a week after the company released an update to the 7-inch Nook Color’s Android operating system that adds an app store, Adobe Flash support and more, seemingly transforming the e-book reader into a low-cost Android tablet.

The basis for the claim is a Securities and Exchange Commission filing mentioning “an announcement on May 24, 2011, regarding the launch of a new eReader device”. It’s a pretty solid piece of evidence, if you ask us…

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