The WSJ is reporting that Amazon is going to strip down a 6-inch tablet and sell it for $50 for the holidays. What’s amazing is that the theoretically color tablet was cheaper to make than even an ebook display version:
Mr. Bezos had set an internal goal of the $50 price tag for versions of both the Fire tablet and Kindle e-reader, viewing the rock-bottom prices as a crucial lure for a more cost-conscious group of buyers, the people said. But the e-reader screen technology from its vendors ultimately proved too expensive to drop the retail price, the people said. Amazon’s cheapest Kindle sells for $79.
It is likely that the $50 Tablet will be a pared down version of the already minimalist $99 6-inch Kindle which has gone on sale for as little at $69 in recent months. The report cites a mono speaker as one of the cost cutting initiatives but the company will likely drop things like cameras, display quality and battery life.
What might be more interesting to me is that Amazon is said to have fired many from its FireOS group in the wake of the Fire Phone flop and subsequent $170M writedown… expand full story