Retailing: From A to Z

Amazon has offered a variety of Kindle Fire tablets for the last few years. These tablets are less expensive than the iPad and offer a number of features. Now, to pump up sales, Amazon plans to introduce a new $50 tablet in time for the holiday shopping season. HOW DO YOU THINK THIS PRODUCT WILL DO?

Why introduce a $50 tablet? As Greg Bensinger reports for the Wall Street Journal:

“Amazon.com Inc. has struggled to draw customers to its pricier tablets. So it’s going further down-market. The Seattle online retailer plans to release a $50 tablet with a 6-inch screen, in time for this year’s holidays, according to people familiar with the matter. That would make it one of the least-expensive tablets on the market and half the price of the company’s current Fire HD 6-inch tablet.”

“The move would potentially attract buyers looking for a simple — and effectively disposable — device for straightforward tasks like streaming video at home and shopping on Amazon.com. But such inexpensive tablets typically come with compromises like inferior screen quality, durability, or battery life in comparison to more expensive tablets like Amazon’s larger Fire tablets and industry-leading devices like Apple Inc. ’s iPad. For instance, the $50 device will have a mono speaker, rather than stereo, one of the people said.”

“The $50 device is part of a slate Amazon is planning to release this year that will also include tablets with 8-inch and 10-inch screens, according to the people familiar. Amazon has long sought to undercut its hardware competitors, in part by eschewing profits on the devices themselves. Rather, Chief Executive Jeff Bezos has said, the company prefers to make money by selling services that work with the devices, like E-books and video rentals.”