Online shopping goliath Amazon is about to dive headfirst into the tablet market this month and has come up with a clever way to take on Apple’s tablet dominance.
According to anonymous sources, their tablet will undercut others on the market by hundreds of dollars in a similar way to mobile phones and games consoles.
Selling at a loss is a tactic that Amazon has succeeded with before – take the Amazon Kindle for instance – which is reportedly sold for a loss, as it actually costs $30 more in materials to make than its retail price.
It’s also a tactic that is employed to great success by game consoles like Xbox 360 and Playstation 3 – with the money always clawed back through paid content.
With Amazon already a one-stop shop for books, games, videos and apps – it could be a very clever way of wrestling a substantial amount of market share from Apple in a very vast amount of time.
The specs of the tablets are shrouded in secrecy, but we do know that they will be running Android and are thought to come in two sizes – 7-inches and 10-inches.
With the amazing demand for £89 HP Touchpad there is definitely demand for extremely cheap tablets and if Amazon sell theirs as a loss leader then it could be a massive hit with cash-strapped consumers this Christmas.
We’ll know a lot more soon as the Amazon tablets are going to available sometime this month. Would you be tempted by a Amazon tablet which is substantially cheaper than the competition without compromising on quality? Let us know by tweeting us!