Amazon tablet to be bargain priced

New York Post source claims it will undercut iPad by "hundreds" of bucks
Adam Smith
Adam Smith -

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Amazon’s challenge to the iPad has been big news the last couple of months, even though nothing has officially been announced regarding the device, still.

The online retail giant is doing an Apple when it comes to the launch and saying nothing, letting speculators generate a blaze of coverage prior to the device’s (or likely twin devices) release.

And the latest speculation confirms exactly what we and many others have been saying for several months – that Amazon will attack the Apple slate on price. A tactic which many big name rivals have failed to realise the importance of. The iPad has continued to maintain a large majority share of the market in 2011.

As we noted in a report a few days ago, the HP TouchPad, which was slashed in price to under a hundred quid in an effort to offload inventory now it has been canned, absolutely flew off the shelves.

And a source who has been talking to the New York Post reckons the budget theory is a definite go-er.

The Amazon tablet (or at least the budget oriented one of the two devices) will sell at “hundreds of dollars” less than the iPad, so presumably we’re talking a $250 or perhaps even a $200 price point.

It’s not likely to be any less than that given Amazon is hardly going to want to sink its Kindle market by out-pricing it with a slate that can do more. And that sort of figure will already be selling at quite a loss for long-term gain.

Android tablets are already eroding the market share of the iPad, even if only collectively. However, the Amazon Android effort could actually become an individual challenger to the Apple slate if the price is right.

Last week, the rumour emerged that Amazon has taken on a third manufacturer to supply its panel needs for the launch of its tablet, which will happen later next month or in October.

We should be hearing an official announcement and some specs soon…

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