Amazon poised to debut Android-powered tablet for ‘hundreds less than $499 iPad’ – says source

“Amazon is poised to enter the tablet fray with an Android-powered tablet in late September or October, a source with knowledge of the plans said yesterday,” Garett Sloane reports for The New York Post.

“The device will sell for hundreds less than the entry-point $499 iPad, a feat few tablet makers have accomplished, the source said,” Sloane reports. “Amazon is considered one of the few credible threats to Apple and has been willing to sell its electronics at a loss in hopes of generating more digital media purchases.”

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Sloane reports, “ITG Investment Research said that tablets running Google’s Android are starting to chip away at Apple’s iPad marketshare, and price will be key to further erosion. ‘We expect to see more and more lower-end, more-affordable Android devices enter the marketplace, which should further allow Android to increase its share,’ said Tony Berkman, CEO of ITG.”

Read more in the full article here.

MacDailyNews Take: If this is true, we can’t wait to see that piece of plastic AppLack™ in all of its $299-at-most glory. Screen size? Screen type? Screen resolution? Battery life? Camera(s)? Lots of details to find out. Watch those Apple patents now, Jeffie, or you’ll be spending more on lawyers than you will on subsidizing your little “iPad killer.”

 

[Thanks to MacDailyNews Reader “Brawndo Drinker” for the heads up.]

60 Comments

    1. So…
      1. Bring out a slate that is hundreds less than the iPad but reeks of cheap components and workmanship
      2. Bring out a slate that is hundreds less than the iPad but is subsidized and cut the other Android OEMs off at the knees
      3. Bring out a slate that forks Android and replaces Google’s ecosystem with Amazon’s ecosystem–that’s gonna be FUN!

      My prayer is a combination of the above options.

      And I still have to laugh uncontrollably when people say that Amazon has mobile consumer hardware chops because they’ve been making the Kindle.

    2. Exactly, this will decimate other Android manufacturers as they do not have the digital download offering to subsidize their tablets. Google will be pi$$ed! And it makes the Motorola acquisition a more terrible one than it is.

  1. If you cut corners you bet you can undercut the iPad But, that is a BIG but, how well will it work? What performance will it have, and how will the customer perceive the tablet for the next purchase.

    Most of all- what will the word of mouth be for this cut rate design? Ummm, it may be another doa product.

  2. So, hp sells their HP Touchpad for 99 because they are discontinuing it and it sells like hot cakes and others see that as a way to beat the iPad? Muhaaaaaaaaaa! Wrong answer 🙂 a 99 dollar tablet is a 99 dollar tablet for a reason.

    1. Actually, the HP Touchpad was a more expensive tablet sold at a massive discount (and big losses). A true $99 tablet is a true POS, like that knockoff being sold at the drug stores. No value, little profit, waste of time and energy.

      And then Apple drops the iPad3 price $50 and everybody runs back to Apple…

    1. Amazon is the one other possible contender with a tablet ecosystem. They’ve been working on the Kindle for as long as Apple has been developing iOS.

      Not that I really think Amazon is a really threat.

      1. It doesn’t matter how long Amazon has been working on the Kindle. The Kindle is like an iPad the way a bicycle is like a BMW. Both will get you to the corner drugstore, but…

            1. I think we’ve both missed the point, my friend. Because you’re effectively saying “What’s the point of selling bicycles?”
              Well, I don’t have a BMW. But I have 2 very nice mountain bikes. Amazon may just not be interested in the BMW business.

            2. Not saying that at all. The title of the article is “Amazon poised to debut Android-powered tablet for hundreds less than $499 iPad”—implying that Amazon’s bargain-priced tablet will compete with the iPad for customers and potentially threaten the iPad’s dominance. All I’m saying is: No, Amazon’s “bicycle” will not be a threat to Apple’s “BMW” because people who are satisfied with a bicycle wouldn’t buy a BMW anyway, so BMW dealers don’t need to concern themselves about the debut of a new bicycle.

          1. Of course ChrissyOne is correct. Personally I do not believe any Android device and Android ecosystem to be better than Apple’s iOS. Not by a long shot. Phones or Tablets. However, Amazon has the books/mags/music/movies to rival Apple’s content. It certainly isn’t the same user experience but if people think that a $299 Amazon tablet won’t sell like hotcakes, you are deluding yourself. For a large part of the population, cost is everything. People that can’t afford iPads will turn to the Amazon tablet. While Apple’s iPad will still grow at a huge clip, the cheaper tablets will grow fast as well – as long as they have a media ecosystem to support it – which Amazon does. Mostly, this tablet will cannibalize other Android devices.

            What I am most curious to see is how these low cost tablets affect other manufacturers: Especially Samsung & HTC who do not have the content to subsidize tablet pricing. This will kill their tablet offering. As for Motorola, well, they won’t be able to compete either unless Google subsidizes.

            Very interesting indeed.

            1. Try reading before replying. I never said that a $299 Amazon tablet won’t succeed. Of course it will “sell like hotcakes”! It’s cheap, and that’s all most people care about. It has nothing to do with affordability. Amazon’s target audience, the people who won’t spend $499 on an iPad, will blow a few hundred bucks taking their families to a baseball game. It’s about perceived value, not price. Most people who buy based on price don’t see the value in spending more. So be it.

  3. And don’t forget display quality. I detest the Kindle’s current screen technology. No color, no photos, no graphics, no deal. I also detest display quality on every Android cell phone I’ve seen so far (but I have not seen them all). They are not sharp and the color’s aren’t calibrated for daylight balance viewing and editing…

      1. Well ok… let me fix that for him, the kindle has horrid graphics.
        The kindle would have been a really cool, as a late 90’s product (kind of like a big Palm) But in 2011, it is really primitive graphics wise.

  4. This is nothing but bluster bordering on blank if the timing of the pre-scheduled exercise of options is close to this fabricated dribble.

    Of course our esteemed regulators will not bother to check the timing of the sales to pseudo-news releases by the payola media.

    The shysters get their news to mitigate apple share price while the pre-scheduled options sales get optimized. I bet if apple released the next beta today, the share price would have fallen and the amazon tablet killer would have been the cover for the market makers to take down the PPS. The shysters are worried apple might release the invites to the iphone and catch them flat-footed.

  5. Amazon will soon learn that the issue here IS NOT the price… it is the huge Eco-System Apple has created around iPads and iPhones which is years light ahead of the competition, iPhone is one of the most expensive phones out there, Macbook Air is not cheap and they sell like pancakes… so cheaper price is not the solution but the right Eco-System which they won’t be able to create…!!!

  6. Amazon will soon learn that the issue here IS NOT the price… it is the huge Eco-System Apple has created around iPads and iPhones which is years light ahead of the competition, iPhone is one of the most expensive phones out there, Macbook Air is not cheap and they sell like pancakes… so cheaper price is not the solution but the right Eco-System which they won’t be able to create…!!!

  7. It seems to me that Amazon’s goal is to manufacture tablet with the production quality of a Samsung Tab (i.e. reasonably close to the iPad), but subsidise the retail price in order to undercut Apple.

    If this is the case, I am struggling to see the purpose. Apple is NOT Amazon’s prime competitor because of the iPad 2. After all, Kindle app has been available on the iOS ecosystem for a very long time.

    If Amazon really does come out with a sub- $300 Honeycomb tablet with hardware comparable to the iPad, it will only undercut Samsung, Toshiba, LG and everyone else who had hoped to produce an iPad challenger. Thanks to Apple’s extremely beneficial component supplier contracts, nobody else can build comparable hardware for nearly as little money as Apple can. Even if they try matching Apple’s price, they’ll still be taking a hit on the margins (barely making any meaningful profits, although they are already used to razor-thin margins on PC hardware). If Amazon forces their retail pricing further down, they will likely have no other option but exit the market altogether.

    Whatever happens in the end, the only winner will be Apple.

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