Amazon Tablet Will Be 'Hundreds Less' Than iPad, Sources Say
The rumors that Amazon plans to release its own Android tablet are multiplying quickly, and they continue to grow more tantalizing — particularly the part about the new tablet costing "hundreds less" than the iPad.
The New York Post reports that the Amazon Android tablet will drastically undercut the price of the iPad. Given that the base iPad model costs $500, "'hundreds less" would mean that Amazon's tablet could be $300 or less. Android tablets have struggled to compete with the iPad so far, but such significant savings might just be what it takes to draw users away from Apple.
That's not to say that price is the only thing going for the Amazon tablet. This tablet reportedly uses a 9-inch screen and will run Android 3.2, the latest tablet version.
With the Kindle, Amazon has proven that it can make good hardware. The Kindle might prove inspiration for more than hardware, though. Amazon sells the Kindle below the cost of parts and makes up the difference and much more in book sales. The same strategy could be how Amazon could make money off a sub-$300 Android tablet. Amazon has a wealth of content — including books, music, movies and even a full Android app store — which could cater to the whims of tablet users. Such a tight integration of device and content could make it easy for Amazon to recoup losses from underpricing the device itself.
Users would benefit, too. One of the most attractive parts of the iPad is the iTunes content and the Apple app store for providing content. An Amazon tablet could be the first Android device to offer a comparable content environment, which would attract consumers.
Especially when it comes at $300.
It's not clear if Amazon will let the tablet eventually supplant the dedicated Kindle e-book reader , but the Android tablet is expected to launch later this year.