We know that Amazon will be launching a tablet or tablets soon, and most analysts are predicting that they will have the best chance at putting a dent into Apple’s dominance with the iPad.
How do they plan on doing it? Well their name for starters, but lets be serious, if you want to come out with a splash then you severely undercut your competition with price. Creative Strategies analyst Tim Bajarin thinks the Amazon tablet will cost $300, but they will discount the price to $249 with the hopes of getting their money back with sales from the Amazon app store. It is expected that they could recoup the loss from each tablet within 6 months and make a profit of 10 to 30 percent per tablet over the next 18 months.
Not only would this effect Apple, but it would also affect all Android manufacturers. Pricing like this make sense because I am still asking myself why anyone needs to pay $400 to $600 for a tablet that gives you nothing more than a smartphone except for screen size.
I have already predicted that Android will own the tablet market share by March 2012. If Amazon decides to go with this lower price, it may happen by the end of 2011.
Are you guys ready to jump on board with Amazon if they come in at $249?