Amazon Notices $100 TouchPads Fly off Shelves, Prices Their Tablet Accordingly
According to the New York Post,
Amazon will be releasing an Android tablet for "hundreds less" than the iPad's cheapest model.
The price declaration reported in the Post article pegs Amazon's Android tablet to be at most $299. The tablets, which have an October release window, will come preloaded with Amazon's App store and "deep Kindle integration."
Amazon is hoping to succeed where HP failed with its TouchPad by introducing their product at a cheaper initial price point, and hopefully recoup the cost through revenues generated by their Amazon App store integration and Kindle integration. Then again, Amazon could look at the TouchPads demise as proof to succeed as a tablet maker in an iPad world, tablet makers need to sell their products at incredibly discounted "fire-sale" prices.
It seems the precedent has been set that the "hundreds less" claim needs to be a lot more than two hundred less, and Amazon will need to foot the bill through increased app sale revenue.