Amazon Tablet Could Topple Apple iPad Reign

August 31, 2011, By Sanjeev Ramachandran

Apple is dominating the tablet market, and there’s no doubt about it. No tablet from any other manufacturer has been able to outshine the iPad – not HP’s TouchPad or any other Android-based tablet for that matter. That is the status quo. But do we see a bellwether? Well, it looks like Apple is about to face competition from the Amazon tablet rumored to be released in October.

It has been  predicted that Amazon could manage to sell between three to five million units in the fourth quarter of 2011. And, eWeek adds that this would make it the most successful Android tablet so far.

The device is expected to have a 9-inch screen and will run on Google’s Android Honeycomb Operating System. The tablet will enable you to watch videos, read electronic books and listen to digital music, supported by Amazon Instant Video and Amazon Cloud Player. Amazon would use its experience in content distribution to push the device by selling apps via the Android Appstore.

The success of the tablet could be assured if it is priced below $300 and enough units are available to meet the expected demand. The fact that Amazon is willing to sell the tablet at a loss and make the difference up from movie rentals and eBook sales could mean that the company will be selling the tablet around the $300 mark. It is also believed that the production cost will also be around $300, but Amazon could eventually make a profit of 10-30 percent on a tablet.

So, in case Amazon’s tablet sells in millions, Android will suddenly appear much more attractive to developers who have taken a wait-and-see approach.

Tim Cook and company, are you listening?

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