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Monday 29 August 2011

Amazon's Tablet to Be 'Hundreds Less' Than iPad


ekummel says:
An Amazon tablet sounds interesting as long as they don't force their users into a locked environment like Apple and the Kindle. If they open up the tablet to everything, then it WILL be a hit!
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Amazon's Tablet to Be 'Hundreds Less' Than iPad

The fire sale of the HP TouchPad (and the resulting rush to snag the tablet) proved one thing: if it's cheap enough, they will come. This could be good news for Amazon, who reportedly plans to release its own tablet in late September/early October for "hundreds less" than the iPad.
According to unnamed sources speaking to the New York Post, the online retailer plans to sell its upcoming tablet for "hundreds less" than what the iPad costs, though no price has been specified. Understandably, it seems as though Amazon wants to get its hardware out there first, and makeup the difference in content sales later.
Sources have told the New York Post that the e-tailer plans to sell the device for "hundreds less" than the iPad, although they didn't specify a target price. It seems as if Amazon wants to sell more hardware first, and then hope to make up the difference in the sales of content later.
In industry speak, this is called a "loss leader" because the product is sold for less than it costs to manufacture the device. 


Amazon hopes that consumers will spend more in its digital content stores as a result of getting the hardware itself cheaper. Now, whether that strategy will work in the tablet sector is up for debate, but it's worked in the video game market for years.
If true, the market strategy presented by the New York Post is helping to flesh out the picture of a device that we still don't know much about. Based on reports, the Amazon tablet is expected to run Android 3.2 with a nine inch screen, slightly smaller than the iPad's 10.1-inch screen but significantly bigger than the Tab's 7-inch screen.
Amazon may release two versions of its tablet: a dual-core processor model for the average consumer, and a more powerful quad-core device for the power user. Other than that, we don't know much, because the company has shared little about its tablet plans (other than telling us to "stay tuned").
Amazon tablet?Amazon tablet?Regardless of the specs, as long as it's comparable to the iPad, Amazon's apparent decision on pricing will pay off. Look at the TouchPad: it was inferior to the iPad in power (and some may argue software), and still sold like gangbusters when the price was right. Imagine a tablet that is closer to the iPad in specs -- how could it not sell well?
The coming price war on tablets will benefit everybody. I'm willing to bet that Apple will even join in and possibly bring the cost of the iPad down a bit, too. Let's remember the company had about a year head start on everybody, so its manufacturing costs have likely fallen to a point where it could drop the price and still make a hefty profit.
I think it's a perfect time for an iPad price drop. Just in time for the holiday season. That could make things very interesting.
For more tech news and commentary, follow Ed on Twitter at @edoswald, on Facebook, or on Google+.

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Comments

  • Follisimo0smi says:


    I'm all for Amazon throwing in their hat to make the tablet market more competitive. And if the price is right on the quad core I might just get one.
  • ekummel says:


    An Amazon tablet sounds interesting as long as they don't force their users into a locked environment like Apple and the Kindle. If they open up the tablet to everything, then it WILL be a hit!
  • sickpup says:


    If the price is right and the hardware is right i'll be there
  • nonseq says:


    ekummel said
    An Amazon tablet sounds interesting as long as they don't force their users into a locked environment like Apple and the Kindle. If they open up the tablet to everything, then it WILLbe a hit!
    I doubt very much that Amazon is naive enough to make it totally open. To keep publishers happy they will have to exercise some control and certainly will have to do better with QA than the Android Market.
    I am constantly amazed at how easily the canard of openness twists any conversation about Android. Android is not open it is under the control of Google- actually proprietary. Why is this so hard to perceive and understand? I guess that fairy tales are easier to embrace than reality.
  • yamanoorcqgu says:


    And, in this week's, identify six similarities game: According to unnamed sources speaking to the New York Post, the online retailer plans to sell its upcoming tablet for "hundreds less" than what the iPad costs, though no price has been specified. Understandably, it seems as though Amazon wants to get its hardware out there first, and makeup the difference in content sales later.
    Sources have told the New York Post that the e-tailer plans to sell the device for "hundreds less" than the iPad, although they didn't specify a target price. It seems as if Amazon wants to sell more hardware first, and then hope to make up the difference in the sales of content later.
  • OmarAlikajxrxs says:


    How come the OS look like the iOS? Well, I wish Amazon the best of luck, nontheless. On the other hand, they ought to have their store and Kindle app accessible worldwide. Couldn't use Kindle on WP7 at all, just for living in Nigeria.
  • simpleminded says:


    From all the talk about the Amazon tablet I am expecting 8.9 inch ips panel, tegra 2, 512MB ram, 8GB on-board storage + sd micro, $299 price point. I also expect The Amazon tablet to be semi-locked down. Amazon's tab will be a vehicle to sell Amazon App Store apps, Kindle books, and music, movies, and tv programs through It's Amazon cloud service. As such it will need to be rooted to get access to the Android market and apps not available in Amazons own Android store.
    If the writers here at pcworld would take the Apple colored blinders off then perhaps they could write something that required a bit of thought and not just regurgitate the prevailing web babel of the day. Target number one for the Amazon tab is the B&N Nook Color. If they can steal some of the ipad's thunder then so be it. But of course "babel derp babel derp....IPAD!!!" gets more page hits.
  • simpleminded says:


    OmarAlikajxrxs said
    How come the OS look like the iOS? Well, I wish Amazon the best of luck, nontheless. On the other hand, they ought to have their store and Kindle app accessible worldwide. Couldn't use Kindle on WP7 at all, just for living in Nigeria.
    That is just a Photoshopped image of a hand holding a slightly modified ipad superimposed so it looks like Jeff Bezos is holding the forth coming Amazon Tab.
  • linuxrants7xpg says:


    OmarAlikajxrxs said
    How come the OS look like the iOS? Well, I wish Amazon the best of luck, nontheless.
    The image probably came from Apple's Legal department! (it's a joke people)
  • KyrillosWickenbergastn says:


    when a tab gets around $100 I'll get one
  • 42n81 says:


    Re: "The coming price war on tablets will benefit everybody. I'm willing to bet that Apple will even join in and possibly bring the cost of the iPad down a bit, too. Let's remember the company had about a year head start on everybody, so its manufacturing costs have likely fallen to a point where it could drop the price and still make a hefty profit.
    ... or, and this is really sinister, Apple could let competition fully develop their tablet, let them manufacture enough to fill the pipeline all the way to store shelves, then when they release it, drop the price on the previous year's base model to a point where the competitor ends canceling the tablet line and writing it off as a bad business decision.
    And for those who believe that Amazon will sell them a tablet at a loss and not lock it in to some form of revenue for Amazon, well .... oh, what's the use. Wait and see.
  • KimiSunyil4 says:


    I might just get one.YEs.i An Amazon tablet sounds
  • KimiSunyil4 says:


    How come the OS look like the iOS? Well, I wish Amazon the best of luck, nontheless. On the other hand, they ought to have their store and Kindle app accessible worldwide. Couldn't use Kindle on WP7 at all, just for living in Nigeria.
    i404beta
  • Pizzaioloah5n says:


    simpleminded said
    From all the talk about the Amazon tablet I am expecting 8.9 inch ips panel, tegra 2, 512MB ram, 8GB on-board storage + sd micro, $299 price point. I also expect The Amazon tablet to be semi-locked down. Amazon's tab will be a vehicle to sell Amazon App Store apps, Kindle books, and music, movies, and tv programs through It's Amazon cloud service. As such it will need to be rooted to get access to the Android market and apps not available in Amazons own Android store.
    If the writers here at pcworld would take the Apple colored blinders off then perhaps they could write something that required a bit of thought and not just regurgitate the prevailing web babel of the day. Target number one for the Amazon tab is the B&N Nook Color. If they can steal some of the ipad's thunder then so be it. But of course "babel derp babel derp....IPAD!!!" gets more page hits.
    I believe you hit the nail on the head about Amazon's competitive target (Nook, etc) and their marketing strategy. Clearly Amazon's current forte is the Kindle family and its ever growing content inventory, and their marketing message will be that this is more of an evolutionary offering, while moving into the more powerful tablet arena with a strong offering. In fact I'd be extremely surprised if Amazon didn't leverage their Kindle brand, making their tablets new members of that family.
  • linuxrants7xpg says:


    KimiSunyil4 said
    How come the OS look like the iOS? Well, I wish Amazon the best of luck, nontheless. On the other hand, they ought to have their store and Kindle app accessible worldwide. Couldn't use Kindle on WP7 at all, just for living in Nigeria.
    i404beta
    Oh fer.... IT'S A PHOTOSHOPPED IMAGE.
    From the article:
    Another copy of the same image from http://zapp1.staticworld.net/news/graphics/225861-fake-tablet_original.jpg. Note the file name.
    The original image (probably):
    Or maybe this one is the original?:
    (That last one was a joke. I don't really think he was holding an etch-a-sketch)
    Can we get past the fake image in the article now?
  • OmeCoatl8elr says:


    Houston -- we have a winner!
    But I need to hear the words "below $199" or else I'm not interested.
  • jazzy007 says:


    ..
  • jazzy007 says:


    ...and ED Oswald wrote: "Look at the TouchPad: it was inferior to the iPad in power (and some may argue software), and still sold like gangbusters when the price was right." I don't thing you get it. TouchPad was sold because it was set at a ridiculous low price. Was the software of hardware inferior, I can tell. Never had an opportunity to test one. Everytime I went to the stores in my area, they did not have one even before the price reduction. The only guide I had was the bias opinion of PCWord bloggers.
  • fattcatt35 says:


    simpleminded said
    From all the talk about the Amazon tablet I am expecting 8.9 inch ips panel, tegra 2, 512MB ram, 8GB on-board storage + sd micro, $299 price point. I also expect The Amazon tablet to be semi-locked down. Amazon's tab will be a vehicle to sell Amazon App Store apps, Kindle books, and music, movies, and tv programs through It's Amazon cloud service. As such it will need to be rooted to get access to the Android market and apps not available in Amazons own Android store.
    If the writers here at pcworld would take the Apple colored blinders off then perhaps they could write something that required a bit of thought and not just regurgitate the prevailing web babel of the day. Target number one for the Amazon tab is the B&N Nook Color. If they can steal some of the ipad's thunder then so be it. But of course "babel derp babel derp....IPAD!!!" gets more page hits.
  • fattcatt35 says:


    I guess that you don't like Apple or the magazine. As for the Nook Color, if you are lucky you may actually get one that works. The concept is good but the hardware lacks QA and the off-shore support is worthless However, for $15, B&N will sell you a manual!
  • AimeeJames75ps says:


    Hmm, I don't think the other tablet can beat iPad, for a product to get success, not the lower price but need more, the design, appearance, innovation, customer experience...
    Now iPad win, bcz it really is innovativem, and deliver an experience that a mass market enjoys and appreciates.
    Just like my iPad, watching movies, check emails, surfing, reading, playing games, and even can developing my nephew's intelligence!
    All in all, the iPad is not win at some degree, but a totally strong exciting experience. And a chain reaction, let app developer's like iFunia those who service for it are booming too.
  • lemoon says:


    the Amazon tablet?
    LOL
  • Jimster480 says:


    I hope they do. I really don't want to spend a lot on a device I'm not going to use that often.

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