Amazon's Tablet to Be 'Hundreds Less' Than iPad

26.08.2011
The fire sale of (and the resulting ) proved one thing: if it's cheap enough, they will come. This could be good news for Amazon, who reportedly plans to release its own tablet in late September/early October for "hundreds less" than the iPad.

According to unnamed sources speaking to the , the online retailer plans to sell its upcoming tablet for "hundreds less" than what the iPad costs, though no price has been specified. Understandably, it seems as though Amazon wants to get its hardware out there first, and makeup the difference in content sales later.

Sources have that the e-tailer plans to sell the device for "hundreds less" than the iPad, although they didn't specify a target price. It seems as if Amazon wants to sell more hardware first, and then hope to make up the difference in the sales of content later.

In industry speak, this is called a " because the product is sold for less than it costs to manufacture the device. Amazon hopes that consumers will spend more in its digital content stores as a result of getting the hardware itself cheaper. Now, whether that strategy will work in the tablet sector is up for debate, but it's worked in the video game market for years.

If true, the market strategy presented by the New York Post is helping to flesh out the picture of a device that we still don't know much about. , the Amazon tablet is expected to run Android 3.2 with a nine inch screen, slightly smaller than the iPad's 10.1-inch screen but significantly bigger than the Tab's 7-inch screen.

Amazon may release : a dual-core processor model for the average consumer, and a more powerful quad-core device for the power user. Other than that, we don't know much, because the company has shared little about its tablet plans (other than telling us to ).