Amazon to launch $50 budget tablet

Online retailer Amazon plans to release a $50 tablet in time for Christmas, targeting the lower end of the market as it struggles to sell pricier devices

TOP WORLDWIDE TABLET VENDORS Q2, 2015

Decline in Amazon tablets shipped, 2013-2014: 69.9%

Apple 24.5% Samsung 17.0% Lenovo 5.7% Huawei 3.7% LG 3.6% Amazon*2.3% Other 43.3% *Q4, 2014 figure

Amazon $50 tablet: Mono speaker will save costs

Cheap tablets typically compromised by inferior screen quality, durability or battery life

Amazon undercuts competitors by selling tablet at loss, recouping
earnings from sales of ebooks and other media

To reduce production costs, Amazon has outsourced development to China and Taiwan, rather than its own Lab126 in California

Device will likely play advertisement screen savers to offset losses

HOW IT WOULD FIT INTO BUDGET TABLET MARKET

Apple iPad mini 2: $299 ”7.9” Samsung Galaxy Tab 3: $199 Huawei Media-
Pad T1: $189 7" 7” LG G Pad 7.0: $165 Lenovo Tab 2: $90 7” New Amazon tablet: $50 6”

Sources: Wire agencies, IDC, individual manufacturers

Pictures: Amazon, NASA

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