Amazon is dangling a US$50 tablet computer in its latest attempt to lure consumers who can’t afford or don’t want the more expensive internet-connected devices made by Apple and other rivals.
The 7-inch Fire tablet unveiled last Thursday marks Amazon’s most aggressive attempt yet to undercut Apple, which has been the market leader since its first iPad went on sale five years ago. The least expensive iPad Mini, which has an 8-inch screen, currently sells for $270.
Amazon.com isn’t trying to persuade anyone that its cheap tablet matches the quality of its own sleeker, higher-priced Fire HD alternatives, let alone the top-selling iPad line.
But the Seattle company is counting on the new tablet’s low price to encourage more people to buy a device that will hook them on watching video, reading books, playing games and shopping on a computer that’s easy to carry wherever they go.
In the process, Amazon is hoping consumers will buy more digital goods and merchandise from its store while also subscribing to its $100-per-year Prime service that offers a mix of videos, music and free shipping.
“Our tablet focus is in and around content consumption,” says David Limp, Amazon’s senior vice president of devices.
As with its previous low-priced tablets, the new Fire device will show ads on its screen saver. Avoiding the ads will cost an additional $15.
The discount tablet will debut amid a slump in the sale of the devices. The downturn suggests consumers who already own a tablet see little need to upgrade and those who don’t have one either aren’t interested in the devices or can’t afford one.
Apple’s iPad sales have been declining since 2013, spurring the company to take aim at selling more of its tablets to corporate customers and government agencies. Industrywide, worldwide sales of tablets are expected to fall 8 per cent this year.
Amazon is hoping the low price of the new tablet will be so appealing that people will stock up on the devices and have them scattered around the house.
Q&A
So what does the discount tablet actually offer?
Amazon is promising a decent processing power, good colour saturation and seven hours of battery life. A more durable version designed for children will come with a blue or pink bumper and a two-year replacement warranty. It will sell for $100.
Anything else?
Amazon also unveiled updates to larger, more expensive tablets and its devices for streaming internet video to TV sets.
Has Amazon tried to take on Apple before?
Yes, it tried to counter the iPhone’s popularity with its own smartphone last year, but it never caught on. The company no longer sells its Fire phone, although it’s still available in other online stores.
What will this include?
A more durable 8-inch Fire HD tablet with faster processing speeds that will sell from $150. An upgraded 10-inch Fire HD tablet will sell for $230. Amazon is adding a remote control with voice-activated search option to its Fire stick for internet video streaming priced at $50.
And what about TV viewing?
Amazon’s Fire TV box will now be able stream ultra HD video with technology that is also supposed to deliver a better picture to screens with standard HD. It will sell for $100 compared with $150 for the new Apple TV box.
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