Amazon Android Tablet to Sell for “Hundreds Less” Than Cheapest iPad 2 [Following the Recent Success of the $99 HP TouchPad, Amazon Is Again Said to Launch A Cheaper iPad Rival This Fall]

Recent rumors and reports have claimed that Amazon is finally ready to launch at least one new original product this fall. And it will not be a new Kindle eBook reader.

The company will release its first Android tablet “in late September or October” according to people familiar with the matter, and the unnamed device will sell “for hundreds less than the entry-point $499 iPad,” a rumor we’ve also heard before. The cheapest iPad model available, not counting refurbished models or previous-generation tablets that sell for less than the official entry-level price, costs $499, a price point generally adopted by most Apple competitors. Motorola learned that the hard way as its Xoom, despite offering some superior hardware features, hit stores with a higher price tag. Before deciding webOS devices are not worth investing in anymore, and subsequently selling the available tablet stock for as low as $99 a pop, HP tried to lure customers in with cheaper TouchPads. That strategy didn’t work for the device, and, despite being priced as low as $299 in certain stores, it didn’t became a best-seller. It hit that status only after HP pulled the webOS plug. Amazon on the other hand may have a better chance of selling a tablet for a lot less than that “official” $499 starting price. The giant retailer is counting on recouping initial losses from content purchased by future tablet buyers. The company already operates video on-demand, music and app stores, not to mention having its own cloud computing service already open to the general public. Therefore Amazon could be posing a threat not only to Apple, but most importantly to most prominent Android tablet makers like Samsung, Motorola, LG or HTC. It’ll be interesting to see whether a $299 high-end Amazon Android tablet (and I’m speculating on price here) will convince millions of customers to purchase. In case such a price change would be beneficial to the company we can expect direct competitors, maybe Apple included, to considering lowering prices for their tablets in the near future. Therefore, whether an Android fan or not, one should definitely applaud this rumored Amazon initiative as it could benefit all tablet consumers, especially considering the current state of the worldwide economy. Anyone particularly interested in a future Kindle Scribe, which is what we’ll call this unborn in lack of an official name?

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  • Kontra

    This is a great plan for Amazon to bring Android App sales in their AppStore to life!

    But hey, what about the rumor that Samsung is going to offer WebOS on a tablet and include WebOS Apps in their App Store?

  • Karl dove

    It could damage apple the big hit! Or apple ipad2 down at $399,00cent

  • ramon h leigh

    Amazon should actually have a big advantage not enjoyed by the other Android players : a huge customer base with many who have already downloaded content from Amazon’s gigantic outlets. The Amazon name provides a lot of comfort for any worried about future services. Amazon ain’t gonna go nowhere. I don’t know how long Apple can survive if folks decide that value is more important than chic. Apple’s future seems
    a lot more uncertain since word of Amazon’s tablets has appeared.