• Amazon Web Services suffered a major outage on Sunday

Amazon Web Services suffered a major outage on Sunday (Photo : Reuters)

After losing millions of dollars in selling its Fire Phone, Amazon is now planning to dive into the affordable devices market.

The retail giant is reportedly working on a much cheaper device that it could launch some time soon, as reported by the Wall Street Journal.

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Last year, Amazon launched its Fire Phone that has a number of cool features, including face detection, multiple front sensors, and object scanning. However, the company gave it a steep price tag, and while it included a one-year membership for Amazon Prime, the specs of the device did not justify its cost. 

Just last week, reports showed that the company has pulled the plug from its first ever Android smartphone.

According to the report, the Amazon Fire Tablet will feature a 6-inch display and should be ready in time for the holiday season by the end of the year.

The unknown Fire tablet will reportedly come with a $50 price tag, which would make it the cheapest slate to be sold by Amazon.

In the report, the current cheapest Amazon slate is the Amazon Fire HD 6, which is priced at $99. 

The upcoming tablet that will be powered by a forked Android version will allegedly come in an 8-inch and 10-inch version, which should cost a little higher.

However, in order to cut down costs on production, the retail giant will reportedly assign two Asia-based companies to work on development, as mentioned by GSM Arena.

In the report by WSJ, Amazon has outsourced the development to Shanghai Huaqin Telecom Technology Co. in China, and Taiwan's Compal Communications Inc.