Our bank accounts are limited. Well, maybe some of yours are not but mine definition has its limits. Small limits. Therefore, you can understand that pricing plays a big role in a vast major of my purchases?
Therefore, it is not surprising that in a survey by Retrevo, nearly 50% of respondents attach price as a major factor regarding their tablet purchases. In the same survey, 55% of the respondents will purchase a tablet from Amazon with the nearest competitors coming in at 31% for both Motorola and HP.
Taking both into consider, and the fact that the Kindle tablet will sport a LCD screen coming in at 9" rather than the customary 10" its competitors like the iPad, Touchpad, and Xoom, and the report that it will have a more rudimentary two-finger touch support than more advanced touch features more capable in competing devices, Amazon could be going for the lower price entry with a good enough product this go around
If Amazon can come out with a single-core or a lower-end dual-core powering a 9" LCD running a modified Android from Google with its own ecosystem, it could be just "good enough" for a large segment of the mobile warriors. It's possible for Amazon to price it $400 and possible $300 if it it subsidized by a 3rd party. There are also reports that the tablet will not have any extra features like cameras.
What this will do to the competition is obvious. And should the Kindle tablet take off, which I believe it will, Amazon can upgrade the following with additional features once they are cheap enough to do so without losing its margins. At the same time, don't think that Amazon isn't above selling these tablets at near cost if it thinks it'll help gain a marketshare away from the iPad.
It's competition grand?
Source: Business Insider.