Amazon unveils $50 tablet

AFP, WASHINGTON: Amazon unveiled a major home electronics push Thursday, led by a $50 tablet computer and other devices aimed at budget-conscious, gadget-hungry consumers. The low-cost, seven-inch (18-centimeter) Fire tablet is part of an upgraded line being launched by the online retail giant, along with updated Fire TV streaming media devices and a new game controller box. Amazon, which appeared to stop sales of its Fire Phone earlier this month after a lackluster response, is making an aggressive push into the living room at the low end of the electronics market as rival Apple launches its high-end tablets and phones. “Today, we’re taking another step in our mission to deliver premium products at non-premium prices,” Amazon founder and chief executive Jeff Bezos said in unveiling the new tablet.
The low-cost tablet, which will operate on the newest version of the Fire OS operating system based on Android, “sets a new bar for what customers should expect from a low cost tablet.”
Amazon has built a reputation for selling at low profit margins to build customer loyalty, and getting consumers into its ecosystem for shopping, music, online video and other services.
The new budget tablet will be available starting September 30, with an option to buy a “six pack” of the devices at $250, with one free.
Amazon is also launching a new 8.1-inch Fire HD tablet at $149 and a 10-inch device at $229 -- less than half the price of Apple’s latest comparably sized iPads.
Analysts said Amazon is unlikely to make a profit on the $50 tablet, and may even lose money on the device, but will use it to lure more consumers into the Amazon orbit.
“It does appear this falls into the philosophy of getting people onto the Amazon platform to make money selling them music and movies and books,” said Avi Greengart, analyst at the research firm Current Analysis. “They have a low price point and could get people to be more likely to use Amazon services,” he said.
Tim Bajarin at the consulting firm Creative Strategies said in a blog post that “these three models can drive a lot of sales of tablets for Amazon and, if the $50 model has strong demand, it could even drive the overall market for tablets up by as much as 10 to 15 per cent from where it is today.”

 

Amazon unveils $50 tablet

AFP, WASHINGTON: Amazon unveiled a major home electronics push Thursday, led by a $50 tablet computer and other devices aimed at budget-conscious, gadget-hungry consumers. The low-cost, seven-inch (18-centimeter) Fire tablet is part of an upgraded line being launched by the online retail giant, along with updated Fire TV streaming media devices and a new game controller box. Amazon, which appeared to stop sales of its Fire Phone earlier this month after a lackluster response, is making an aggressive push into the living room at the low end of the electronics market as rival Apple launches its high-end tablets and phones. Today, were taking another step in our mission to deliver premium products at non-premium prices, Amazon founder and chief executive Jeff Bezos said in unveiling the new tablet. The low-cost tablet, which will operate on the newest version of the Fire OS operating system based on Android, sets a new bar for what customers should expect from a low cost tablet. Amazon has built a reputation for selling at low profit margins to build customer loyalty, and getting consumers into its ecosystem for shopping, music, online video and other services. The new budget tablet will be available starting September 30, with an option to buy a six pack of the devices at $250, with one free. Amazon is also launching a new 8.1-inch Fire HD tablet at $149 and a 10-inch device at $229 -- less than half the price of Apples latest comparably sized iPads. Analysts said Amazon is unlikely to make a profit on the $50 tablet, and may even lose money on the device, but will use it to lure more consumers into the Amazon orbit. It does appear this falls into the philosophy of getting people onto the Amazon platform to make money selling them music and movies and books, said Avi Greengart, analyst at the research firm Current Analysis. They have a low price point and could get people to be more likely to use Amazon services, he said. Tim Bajarin at the consulting firm Creative Strategies said in a blog post that these three models can drive a lot of sales of tablets for Amazon and, if the $50 model has strong demand, it could even drive the overall market for tablets up by as much as 10 to 15 per cent from where it is today.