Amazon’s ambitious first foray into the smart-device market has been fairly disastrous and struggled to compete with huge brands such as Apple at higher price tiers. As a result, Amazon is reportedly shifting their focus to the budget sector and preparing a 6-inch $50 tablet. In theory, this is a pretty cogent idea as the low retail price should widen the device’s appeal and reduce the barrier to entry. Amazon’s financial strategy revolves around services and inexpensive tablets could bring a whole host of new subscribers to Prime and the Kindle store.
However, there are alternatives from unknown Chinese brands under $50 which could eke away at their market share. Despite this, Amazon could dominate sales in the budget tablet sector due to their reliable customer service and brand identity. Although, this move does seem a little strange considering Amazon recently fired “dozens” of engineers from “lab126” which created the company’s Fire handsets.
Perhaps, Amazon sees some success as a hardware company at the lower-end and expects this move to create a strong foothold. If the $50 tablet manages to impress, consumers might become more inclined to try out a premium Amazon tablet.
Do you own any Amazon-designed hardware?
Thank you The Wall Street Journal for providing us with this information.