The 6-inch Fire HD 6 tablet costs US$99 with ads, and is currently Amazon's cheapest tablet offering. (Image Source: Amazon)
Amazon is reportedly planning a US$50 6-inch tablet that will be released in time to make it onto your holiday shopping list.
The world’s largest online retailer may be best known for its comprehensive online store front and Kindle e-readers, but it has also attempted to break into the market for tablets and smartphones. Unfortunately, the Fire phone was a flop and it has struggled to compete with more established manufacturers like Apple and Samsung in the high-end tablet space, which would thus explain the plans for a budget 6-inch slate.
At US$50, the new tablet would be half the price of the 6-inch Fire HD tablet, which costs US$99. It is even cheaper than the cheapest Kindle e-reader, priced at US$79. While Amazon’s tablets have always been relatively affordable compared to the competition, this tablet would come in at a nearly unrivalled price point.
According to the Wall Street Journal, the tablet would be just the first of a slew of tablets in the works from Amazon later this year, which would also include 8- and 10-inch models. However, it's not clear what sacrifices Amazon would have to make to offer a tablet at a price like that, and if the cost savings would even be worth the likely performance trade-offs.
Amazon supposedly lowered costs for the new 6-inch tablet by outsourcing the majority of the development work to overseas firms like Shanghai Huaqin Telecom Technology Co. and Taiwan’s Compal Communications Inc. The work is traditionally done at Lab126, Amazon’s Silicon Valley-based hardware development center, which was recently subject to layoffs and reorganizations after the Fire phone debacle.
Even with a US$50 tablet on the way, Amazon still has its work cut out for it. Apple may launch its new iPads as soon as tomorrow, and research firm IDC put Apple and Samsung’s combined US tablet market share at 42% in the second quarter, compared to Amazon’s measly 1%.
Source: Wall Street Journal via CNET
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