Amazon who is tipped to launch a brand new pair of low cost Android based tablets next week will sell the devices in Australia for up to $230 less than the Apple iPad.The online Company who already sells their Kindle reader in Australia both direct and via Dick Smith is set to hold a press conference in New York on Thursday morning EST time when it is expected that they will launch a 7″ and 10″ Android based tablet.
According to analysts and investors, Amazon could be a major threat to Apple and several other brands that sell their Android based tablets via traditional retailers who demand a minimum of 25% margin and in the case of Harvey Norman an additional rebate plus marketing incentives.
The tablet is believed to be built around a low-cost design that will retail for around $250. The devices will run Android and have access to some tablet features including the Amazon Appstore which was last week made available for Australian consumers.
Also included will be an Instant Video app, as well as possible Cloud Player. To keep the price down it’s believed that a front and back camera has been eliminated.
Electronista said even with the choices, the design may still be Android’s best opportunity at success in a tablet design simply through volume. Millions of models are unofficially expected to ship starting from October where many of those using Android 3 may ship less than a million at best during the same period.
Forrester analyst Sarah Rotman Epps said the firm believes a reasonably-priced, dedicated tablet from Amazon could be a credible iPad contender. Epps suggested that the tablet, if priced below $300, could sell 3 to 5 million tablets in the fourth quarter 2011 alone, Apple’s least-expensive iPad, the 16GB Wi-Fi model, starts at $599.
Gartner believes that Apple will continue to command more than 50 percent of the tablet market until 2014, due to its unified user experience across hardware, software and services.
“Unless competitors can respond with a similar approach, challenges to Apple’s position will be minimal,” said Gartner research vice president Carolina Milanesi. “This is because Apple delivers a superior and unified user experience across its hardware, software and services. Apple had the foresight to create this market and in doing that planned for it as far as component supplies such as memory and screen. This allowed Apple to bring the iPad out at a very competitive price and no compromise in experience among the different models that offer storage and connectivity options.”