Amazon Set to Release New Fire Tablet, Slashes Price to $50
Amazon (AMZN) is reportedly cutting the price of its new tablet in half to just $50 for the 6-inch version. Its cheapest current Fire tablet costs $99. The new one is reportedly set to come out in time for the holidays this year. Users will be able to stream video and do some online shopping. But, low cost typically also means low performance, and with a $50 price tag, things like screen quality and battery life will likely be inferior. The release will also include 8 inch and 10 inch display tablets. The cost-cutting strategy is one way of attracting customers and steering them away from its competitors. 'Pricing is a consideration for a lot of consumers so I think it helps a bit in the category,' B. Riley & Co.’s analyst Scott Tilghman stated. The new tablet is much cheaper than other tablet prices such as Apple's (AAPL) iPad mini 2, priced at $299, Samsung Electronics’ (SSNLF) Galaxy Tab 3, $119.99, and Dell's Venue 8 Pro, which starts at $179. While Amazon.com is known for its e-commerce prowess, its performance in the device market has been less than stellar. TheStreet's U-Jin Lee reports from New York.
