Amazon tablet to be 'hundreds cheaper' than the iPad

Amazon tablet to be 'hundreds cheaper' than the iPadAmazon's upcoming tablet looks set to heavily undercut the cheapest iPad in a bid to steer customers away from the market-dominating slate, according to the latest rumours.

According to the New York Times, the yet-do-be-named Amazon slab will come in “hundreds” below the iPad to create a new benchmark for affordability.

The tablet market is still finding its feet, but it has become plainly clear in recent months that consumers simply aren't biting at the current price point – not for anything other than the iPad, anyway.

Which is why Amazon is planning on coming in cheaper with its Android slate – quite a bit cheaper. The NYT's source isn't quoted directly (or identified beyond the usual “sources familiar with Amazon's plans” routine), but reckons we're talking hundreds of dollars here.

Of course, the nature of Amazon as a business is very different to more mainstream tech manufacturers such as Samsung or Sony. It can afford to go super-aggressive on price, even to the point of selling its tablet at a loss, because it will will make it all back in increased app sales from the Amazon Appstore.

Amazon's tablet is expected to launch in late September or early October, and its arrival could be a significant point in the tablet market's evolution. If it sells well, then that's the price everyone else is going to have to aim for, and if it doesn't... well, then people really are only interested in the iPad.

Read more about: Android

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JanSt / MOD  Aug. 28, 2011 at 13:16

In what currency?

LockyUK  Aug. 28, 2011 at 13:27

No doubt USD, i should hope GBP tho, wishfull thinking!

TJ Skywasher  Aug. 28, 2011 at 16:05

The cheapest iPad is £399 so if they're taking hundreds off they must be practically giving them away! I wouldn't expect it would be a decent spec if they're not going to be making anything on them. Not likely to compete with the iPad I don't think, only in sales volume if peeps are after a cheap tablet.

JanSt / MOD  Aug. 28, 2011 at 16:24

I'm not so sure about that. Look at the Kindle prices (and I'm not even referring to the ad-supported discount ones in the US) - they aren't making much money with the hardware. But making you buy books through Amazon...that IS the kicker.
Or check out Barnes and Noble's Nook Color...same deal. Good hardware sold cheaply, but tying you to ONE store. Amazon can afford to sell tablets at a loss.

Julias  Aug. 28, 2011 at 18:09

I heard that Amazon are also planning to give away their Kindle readers for free in order to boost their App store.

JanSt / MOD  Aug. 28, 2011 at 20:50

that wouldn't surprise me.
Seriously, compare the kindle readers and the many inferior copy-cats...Kindles are "too cheap" lol.

I, by the way, happen to suspect HP's decision to "dump" webOS and practically give away the Touchpad might have been part of a strategy ;)

matt101101 / MOD  Aug. 29, 2011 at 01:03

I agree with you there Jan, there was something way to calm about HP's decision to stop making the TouchPad, I mean look at the media coverage and unit sales they've achieved over the last few weeks, it's been incredible. I'm just not sure what their plan is yet, I can't seem to work it out :p. Oh and just to keep it on topic, the Amazon tablet is the only true hope of dethroning the iPad as king of tablets, through massively undercutting the iPad's prices.


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