Amazon is reportedly prepping a tablet that will sell for 'hundreds less' than the iPad, according to the NYP. The tablet is set for release in late September or October, said their source.
The device will sell for hundreds less than the entry-point $499 iPad, a feat few tablet makers have accomplished, the source said. Amazon is considered one of the few credible threats to Apple and has been willing to sell its electronics at a loss in hopes of generating more digital media purchases.
"If Amazon is particularly aggressive on pricing, that could be a trigger for many players to rethink the sales price of tablets," said Charles King, the lead analyst at Pund-IT.
Amazon has the advantage of impressive ecosystem involving cloud computing, advertising and affiliates, distribution centers, retail sales, music/movies/app stores, and more. It will difficult for most hardware companies to compete on price when Amazon could simply sell its tablet at a loss and use its ecosystem to generate profits.
The New York Post references the incredible rush to purchase the HP TouchPad at its liquidated price of $99 to suggest that there is likely a huge amount of consumers ready to buy a tablet at a price they can afford.
Read More [via BGR]
The device will sell for hundreds less than the entry-point $499 iPad, a feat few tablet makers have accomplished, the source said. Amazon is considered one of the few credible threats to Apple and has been willing to sell its electronics at a loss in hopes of generating more digital media purchases.
"If Amazon is particularly aggressive on pricing, that could be a trigger for many players to rethink the sales price of tablets," said Charles King, the lead analyst at Pund-IT.
Amazon has the advantage of impressive ecosystem involving cloud computing, advertising and affiliates, distribution centers, retail sales, music/movies/app stores, and more. It will difficult for most hardware companies to compete on price when Amazon could simply sell its tablet at a loss and use its ecosystem to generate profits.
The New York Post references the incredible rush to purchase the HP TouchPad at its liquidated price of $99 to suggest that there is likely a huge amount of consumers ready to buy a tablet at a price they can afford.
Read More [via BGR]