Amazon Plans to Release 6-inch Tablet for Only $50

by Istvan Fekete on September 8, 2015

After failing to attract customers to its pricier tablets, Amazon plans to go down-market: The online retail giant plans to release a $50 tablet with a 6-inch display just in time for the holidays, according to people familiar with the matter, reports the Wall Street Journal.

The move could potentially attract buyers looking for a simple device for tasks such as streaming video at home or shopping on Amazon’s online store. However, we must note that such cheap tablets come with compromises on aspects such as screen quality and battery life when compared to the pricier but higher quality Fire tablets and Apple’s iPad. The $50 tablet, for example, will incorporate a mono speaker, according to one source.

Actually, the inexpensive tablet is in line with Amazon’s strategy to undercut its hardware competitors and eschew profits on the devices themselves, as the company prefers to make money by selling services that work with the devices, such as eBooks or video rentals.

According to an internal goal leaked to the WSJ, Amazon CEO Jeff Bezos had wanted a $50 price for versions of both the Fire tablet and the Kindle e-reader, as he sees the rock-bottom prices as a crucial lure for a more cost-conscious group of buyers, but the screen technology proved to be too expensive, so it wasn’t possible.

To achieve its goal this year, Amazon has outsourced much of the development to overseas firms. The new 6-inch tablet will be only half an inch bigger than the iPhone 6 Plus and isn’t expected to have telephonic capabilities.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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