Amazon’s Android Tablet May Be Sold Cheaper At A Loss

We have spoken on occasions about Amazon’s Android tablet, and how it is still currently in the pipeline. We now have new news about the mysterious tablet and it seems the price could be very interesting. It appears that Amazon could be prepared to offer the tablet for a very cheap price, they could even make a loss on each unit sold.

Although it seems a ridiculous thing to do, when you look closer it is not so mad. We know that the primary focus of all these tech companies is revenue and this will be generated from other ways. Where Amazon sell the tablet itself for a relatively low price, the real money will be made on apps, music and eBooks that you buy for the device. Tech Radar has described this tactic as a “trojan horse” and it is often used by many companies. Sony and Microsoft apparently make losses on their PS3 and Xbox 360 consoles but make their real money from games and accessories.

So what do we know about Amazon’s future tablet thats expected out at the latter part of this year? Well the tablet was initially tipped to launch in late August but this looks increasingly unlikely now. We know that Amazon placed an order for 2 million touch screen panels with parts manufactures, with more to be bought based on the success of the 1st batch of sales. The demand for handheld portable consoles is high, with Amazon’s Kindle being their best selling ever product.

According to T3, Amazon’s upcoming 10 inch tab is expected in October and will challenge Apple’s iPad 2 in the run up to Christmas. The e-commerce giant sell all of their additional media through the “Amazon Appstore”. This name was the subject of a legal dispute between Amazon and Apple as the iPad creators believed this name infringed on their “App Store” trade mark, the injunction was denied.

So now that Amazon won that round against Apple, how will they fare in the sales market? The iPad is the undisputed king of tablets, but in fairness Android is slowly but surely swallowing up more market share. Amazon’s tablet has in my eyes all of the makings for success, such as affordability, the reputation from Kindle and the fact they will be powered by the world’s most used operating system.

We do not know too much about specs right now but we assume they will be competitive with most other tablets in the market. Amazon also have their cloud based service that they could integrate with their tablet, as well as acquiring on demand movie service LoveFilm so expect a pre-loaded app for movie rental. How much would you pay for Android’s tablet and are there any specs and features in particular you would like to see? Let us know in the comments.