Amazon is reportedly set to launch an Android-based tablet in October, rumoured to undercut the price of the iPad and other devices by ‘hundreds less’.
The New York Post reports that the Amazon Android tablet will drastically undercut the price of the iPad.
Given that the base iPad model costs $500, “‘hundreds less” would mean that Amazon’s tablet could be $300 or less.
Amazon’s rumoured 7-inch tablet, the so-called Coyote is due to start shipping in October this year.
The tablet reportedly uses a 9-inch screen and will run Android 3.2, the latest tablet version.
The bigger 10.1-inch tablet, called Hollywood, will be handled by Foxconn, who produced the iPad 2 and also produces the Kindle e-book reader for the shopping giant.
Production for the bigger tablet is slated to begin early next year.
Its rumoured that the 7-inch Coyote will be powered by Nvidia’s Tegra 2 dual core chip, while the next-gen Hollywood will feature the quad-core Tegra 3/Kal-El CPU.
Android tablets have struggled to compete with the iPad so far, but such significant savings might just be what it takes to draw users away from Apple.
With the Kindle, Amazon has proven that it can make good hardware. The Kindle might prove inspiration for more than hardware, though. Amazon sells the Kindle below the cost of parts and makes up the difference and much more in book sales.
The same strategy could be how Amazon could make money off a sub-$300 Android tablet.
The news comes as Amazon is set to launch a new version of its shopping website, adapted to appeal to tablet and PC owners.