Online retailer Amazon is planning to release a tablet device that only costs $50 just before the start of the holiday season. The company is trying to enter the lower-tiered market after its pricier devices failed to capitalize in terms of sales performance.
According to The Wall Street Journal, people close to the company said that Amazon is planning to release a 6-inch device. If the rumors are true, a $50 6-inch tablet will be one of the most affordable devices in the market when released. The price tag is also half the current price of the 6-inch Fire HD tablet.
Experts said that Amazon decision to release a budget friendly device is in order to attract customers who are looking for an uncomplicated and disposable device that could do simple tasks such as streaming videos and shopping on Amazon's website.
Most of the time, hardware manufacturers have to cut some edges in order to deliver a less-pricier device without compromising much of its core functions. Budget friendly devices often comes with an inferior screen quality, battery life and durability compared to their more-expensive counterparts.
Additionally, the $50 tablet from Amazon will sport a mono speaker instead of the more common stereo speaker. The tablet is also scheduled to be released in the latter part of the year along with two more tablets with a 10-inch and 8-inch screen, according to Reuters.
Forrester Research analyst Frank Gillett told The Wall Street Journal, "Will people tolerate a potentially inferior experience just because a tablet is $50? Amazon has to be very careful about what they're giving up to get to that low price point."