Amazon Eyeing Top Spot with Low-Priced Tablets

August 15, 2011, By Sanjeev Ramachandran

Amazon is seemingly looking to bag the top rung of the tablet ladder. We have heard about the company’s plans to release their very own brand of Android tablets, and even before we have seen (or heard) how they will look like, the company is stacking up its cards to reach the tablet throne.

Very little is known about their tablets, and we have heard rumors of Amazon tablets carrying 7 or 10 –inch display with a multi-core processor from either NVIDIA or Texas Instruments hiding under the hood. Amazon, the new boy in the Android block, should have some new tricks up their sleeve if they are looking to become the top seller of Google-powered tablets.

According to Strategies Analysts, Amazon might be able to dominate in the area of pricing if they are willing to sell their products for low cash, starting around $249. This might seem foolish, but analysts say that if the company plays it right, they could recoup their losses with the sale of their digital books, videos, music, apps and other goodies through their online market shelves.

“By my guesstimates, Amazon would make back that loss within six months and reap a profit of anywhere from 10 to 30 percent on the tablet over the last 18 months of the device’s accounting period,” explains Creative Strategies analyst Tim Bajarin.

The whole idea does seem a bit far-fetched, as there are many tablets labeled as cheap substitutes to the popular iPad, and these are not being exactly whisked off. Moreover, it needs to be seen whether Amazon is willing to risk the loss factor with the sale of their online goods.

With no solid wordings on the said tablets, it would be very difficult to estimate how much money would go into its manufacturing. So it shouldn’t be surprising if the company, in the end, sells the tablets (if they come out at all) at a much higher price than guesstimated now.

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