September 8, 2015
Amazon is reportedly gearing up to release a tablet for technology buffs on a budget.
The eCommerce kingpin has plans to launch a $50 tablet with a six-inch screen in time for the Christmas shopping season, the Wall Street Journal is reporting.
As the publication pointed out, the rumored tablet would be one of the least expensive on the market, making it the ideal choice for people without a ton of money to spend. It would be half the price of Amazon’s six-inch HD Fire tablet.
The $50 tablet would be the first of a line that Amazon plans to release this year — one that would include tablets with eight-inch and 10-inch screens, sources told the Journal. Currently, Amazon’s largest tablet is its HDX 8.9.
The goal, the report said, is to undercut competitors, even though it means not making a profit on the hardware. CEO Jeff Bezos has said in the past he would rather forgo a profit to gain customers. Instead, Amazon makes its money by selling services for the tablets such as eBooks.
Making a cheap tablet, however, can be a gamble, as one expert pointed out to the Journal.
“Will people tolerate a potentially inferior experience just because a tablet is $50?” asked Forrester Research analyst Frank Gillett. “Amazon has to be very careful about what they’re giving up to get to that low price point.”
Amazon has declined to comment on the report.