Amazon planning to make a loss on its tablet?

Amazon planning to make a loss on its tablet?It's not just any tablet that can be successful in today's market. After all, aside from the iPad and the Samsung Galaxy Tab, has any tablet really managed to get anywhere at all?

So it's clearly going to take something a bit special for Amazon to buck the trend, and according to PC Mag that something special is selling its slate at a loss.

The idea is that Amazon will lose on the hardware but come out ahead through the sale of apps, music and e-books. It's not the first time we've heard the theory, and indeed the Kindle e-book reader already operates on a similar basis, though of course it only runs e-books.

“If Amazon provides a product that is sold under cost with the goal of making up the rest of the cost and profit from apps, services, and even advertising, it could give all of the other Android vendors a serious run for their money,” PC Mag reckons.

Sounds like a fair point, and such a strategy would be playing to Amazon's strengths in a way that none of its rivals can match. It's the only one with its own Android app store, and of course its tablet would be able to plug into the existing Kindle e-book infrastructure instantly.

But most importantly for you and me, it means a half-decent Android tablet at a great price. Bring it on!

Read more about: Android

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2 comments

JanSt / MOD  Aug. 9, 2011 at 19:19

You cheeky headliner... :p Selling at or below cost is not "planning a loss". It's planning for profit the sly way. Aka the Playstation way. Aka the bill-pay phone way...

Stelph  Aug. 12, 2011 at 14:33

Yup, thought this was common "rumour" knowledge! This would be the best way for Amazon to muscle in on the iPad in a way that other manufacturers havent been able to (since most seem unable/unwilling to beat Apple on price)

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