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Could Amazon’s Android Tablets Cost ‘Hundreds Less’ than the iPad?

A New York Post article commenting on the recent $99 HP TouchPad craze points to price as a main reason why no tablet has been able to topple the iPad’s top ranking. Given that many have attempted to match the iPad’s $499 price tag without much success, the report mentions that Amazon may stand the best chance by offering tablets priced “hundreds” of dollars less than the iPad. An aggressive pricing model might include Amazon accepting losses on the actual hardware in hopes that the sale of digital media such as apps, eBooks and video rentals will compensate for a device priced at a low margin. Unlike other manufacturers, Amazon certainly has the retail power to take such a risk.

But Amazon is rumored to be launching two versions of their tablet, a 7-inch and 10-inch model. While it is feasible that the 7-inch version with its supposed NVIDIA Tegra 2 processor could come in for well less than $499, it is hard to imagine the 10-inch model, which is said to be one of the first devices that will launch with NVIDIA’s quad-core Kal El chipset, will be able to do the same. That is unless Amazon is more than willing to accept negative revenues on the tablet, putting much faith on the device’s ability to generate revenues in other ways. There is always the possibility that Amazon takes an ad-subsidized approach such as the one recently introduced for the Kindle.

Amazon’s first Android devices have much of the tech world waiting in anticipation to see how the retailer approaches elements such as hardware and pricing, and for good reason. Could Amazon, as the New York Post  piece suggests, stand the best chance of stealing the lead away from the iPad?

[via NYPost]




  • MrDSL

    I hope this is a huge success..Game consoles basically do the same thing..Anything to knock Apple down a some pegs.

  • http://none Hash

    Sounds good to me. I think it’s a very smart plan.

    • Reao000

      android is for fat kids

      • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

        So’s your mom.

  • DarrenR

    Quad-core 10 inch tablet for less then the cost of an iPad? Sounds good to me.

    • ScottColbert

      If they did, you could always use the web version of the market.

      • AJA0

        You replied to the wrong post..

        • ScottColbert

          Thanks Einstein.

  • robojerk

    HP touchpad liquidation proves people are interested in cheap tablets, not pay the price of a laptop for a tablet with less functionality.

    • http://twitter.com/edwardderuiter Edward DeRuiter

      I disagree… There are a ton of cheap tablets out there but no one wants them because they are CHEAP. The HP Touchpad was a $400 device being liquidated for $100. What people like is a DEAL.

      • Del373

        So once a company can come up with a way to sell a 400 dollar device for 100 bucks without taking a major hit (and not just by liquidating the product) they will be able to crush the competition.

    • Chet Stovepiper

      i agree. this is how i felt about tablets. i didnt want to pay as much or more than a laptop costs for something that is less functional and only more convenient in certain situations. a tablet is cool for quick browsing and media and travel but typing is awkward and i feel the need to jump to a real computer to get anything done. they should be priced below laptops.

  • oldtaku

    Heck, I’d buy a quad-core 10 inch Ice Cream Sandwich from Amazon for $400 in a flash.

    Assuming they didn’t do something completely asinine like lock out Google Marketplace.

    • mrsbelpit

      Yeah, I’m wondering if this is going to have the real market. I wouldn’t buy one without it. But “regular” consumers probably won’t care.

    • Len Waugh

      I’m fairly certain it will not come stock with Android Market but it will quickly get installed onto it.. most likely with out root, like most of the other lower end tablets. Worst to worst root will be needed but if you cant root you probably don’t care which market you have.

  • mrsbelpit

    I do believe if anyone is willing to take a loss to break into the market, it would be Amazon. I’d like to see it work out for them.

    • http://www.letstalktablets.com letstalktablets

      yeah for sure, plus if anyone could afford such a marketing strategy it’s Amazon too

  • zedthegreat

    I’m interested to see how it works outside of US. Remember no Amazon market or on demand videos (prime I think it is called) outside the states

  • nellibly

    I suspect that Amazon will block the Android Market in favor of their own app store, and pile on some Amazon bloatware if they are going to offer a cheaper option. That’s the model Barnes and Noble chose. I also suspect the nice people over at NookDevs will be all over it.

    • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

      And it’ll be rooted within 5 days and all will be well.

  • http://www.facebook.com/profile.php?id=100000885395998 Joy Coleman

    I would certainly buy one.

  • Mark Trimmer

    Competition is good and I think Amazon may just take this approach. If the thing is as hackable as the Nook Color, I’d be very tempted.

  • Steven Schwartz

    I’m hoping this takes off. I don’t care if the price is still higher than Apple. A quad-core 10 inch tablet sounds amazing!

  • Montisaquadeis

    Hmm if this is cheap enough in price and comes in a Wifi only model I may pick one up. Even tho I am needing a better Computer then what I currently have. I can tether the tablet to my boost phone if I need internet while I am out with it. I may go with the 7 inch one for reading and whatnot while in bed and on the road. since I cant drive I need something to keep be entertained while on extended road trips.

  • S K

    I would wish for Amazon to pull this as long as they don’t remove Google Android Market support and replace it with Amazon Market. However, I wouldn’t be surprised if Amazon tried to remove Google Market support.

  • Semianonymous

    I can foresee amazon launcher the cheaper 7incher first, and seeing how popular their digital media is, and how much they make on it. The more popular it is, the lower the price of the 10 inch tablet could be.

  • patt

    I have both an ipad and an asus transformer and like them both for different reasons. I would be all over the Amazon hollywood in a heartbeat at the right price.

  • http://www.facebook.com/BoriOki Boris Gershman

    Console makers do this all the time. And on a side note. It seems Amazons business seers did a good job of guessing Steve Jobs stepping down ;)

  • seethelunatic

    “it is hard to imagine the 10-inch model, which is said to be one of the first devices that will launch with NVIDIA’s quad-core Kal El chipset, will be able to do the same.”

    Bah. BoM on a TouchPad is $308; an Amazon device at 10 inches and $299 is quite doable.

    And while I do expect Amazon will make it easier to use Amazon’s online services with the device, they don’t need to lock it down. Because the most important thing for Amazon’s long-term future here is knocking the iPad down. As long as the iPad is dominant, the iPad’s vertically-integrated Apple services-and-content model threatens to leave Amazon without any market on tablet devices at all. If the default platform for tablets becomes Android, though, Amazon will have a market to sell to.

  • Level380

    Not *COULD* be cheaper, it *SHOULD* be cheaper…..

  • http://www.marionixon.com B Tog

    If they can push up anything that’s comparable to a Touch pad and keep it under $200. They will do well. personally I think more tablets are too expensive. 300 to 400 I feel is a goo range. That being said I’m hoping to score 2 Touch pads once Hp gets some in stock.