Internet Retailer Amazon to Enter Tablet Race

By Ashok Bindra September 26, 2011

International multimedia news agency Reuters reported that the world's largest Internet retailer, popularly known for supplying e-reader Kindle, is getting ready to unveil a tablet computer at competitive prices to seriously challenge the dominating iPad. As per the report, Amazon is expected to unveil a tablet computer this week.

Last, Friday, the company sent out invitations to the media regarding a press conference to be held in New York on Wednesday. However, no further details were provided. Market research analysts were confident that the world’s largest Internet retailer was going to introduce a tablet computer to expand into mobile commerce and sell more digital goods and services.

“Wednesday is tablet day,” said BGC Partners analyst Colin Gillis in a statement. Meanwhile, media reports indicate that Apple has sold about 29 million iPads since introduction last April.

While it is not certain that Amazon’s entry into the table race is good for its shareholders, the BGC Partners analyst is wondering whether the company is going to price the tablet below those of rivals.

However, Gillis told Reuters,”Knowing Amazon, it is likely to be a very aggressive price.”

But, another analyst, who is not identified, told Reuters that just as Amazon's Kindle e-reader was priced low to quickly get traction among readers, the company is likely to keep the price of its tablet low to attract users and sell other content and services. Likewise, Forrester Research analyst James McQuivey sees this as a marketing tool to build a relationship with customers and sell them cloud (computing) services.

Early this month, a TechCrunch blog revealed some details of the Amazon tablet. As per the blog, Amazon tablet is expected to be a 7-inch device with a full color, touch screen. It will be powered by Google's Android software and may cost about $250, which is below the price of the least expensive iPad. Other specs revealed include 6 GB internal storage, Wi-Fi Internet connectivity, and a micro-USB port.




Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

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