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Amazon to release $50 tablet to combat poor sales of more expensive devices

The Amazon Kindle book readers has been a huge success, the same cannot be said for the company’s more expensive tablets, as a result it has decided to go down market and produce a cheaper version. This is clearly illustrated by research carried out by the firm IDC; this showed that in the second quarter Apple and Samsung Electronics Co. alone commanded 42% of the U.S. tablet market, while Amazon held less than 1%.

Amazon plans to release a $50 tablet with a 6-inch screen, this would make it amongst the cheapest tablet currently on the market and would be half the price of their current Fire HD 6-inch tablet. It will certainly bring in a new set of buyers that are looking for no nonsense simple and potentially disposable device which would stream videos at home; it could also be used to access Amazon and shop from the site.

Many of the cheaper end tablets can have problems such as poor screen quality, poor battery life and possibly not very durable, compared to more expensive devices such as the iPad or Samsung, even their own larger Fire tablets. The new tablet is amongst others that are planned and which will include 8-inch and 10-inch screens. However they will face new competition as Apple may introduce new versions of its popular iPad and iPad Mini tablets as soon as Wednesday, along with new iPhones.

The more expensive tablets marketed by Amazon are not the first troubles to face the company in recent times, when they introduced the Fire smartphone, claimed to be equal to the iPhone last year, they were lambasted by critics over the pricing and sales fizzled out. Since then the company said they would take a $170 million write-down primarily for unsold inventory. They have also abandoned other projects like a projector device, a smart stylus and 14-inch tablet.

When they do eventually produce the cheaper $50 tablet, they will face stiff competition as Walmart, as well as amazon themselves sell several 7-inch tablets for around $50. Interesting times ahead in the battle of the smaller screen tablet market.



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