Amazon offers tablet computer for $50
Amazon offers tablet computer for $50 Amazon's new $50 Fire tablet sits on display along with assorted colored cases, background, in San Francisco. Amazon.com is introducing the $50 tablet computer in its latest attempt to boost its online store sales by luring consumers who can’t afford more expensive Internet-connected devices made by Apple and other rivals. (AP Photo/Eric Risberg)
Amazon offers tablet computer for $50
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Amazon is dangling a $50 tablet computer in its latest attempt to lure consumers who can't afford or don't want the more expensive Internet-connected devices made by Apple and other rivals.
 
The 7-inch Fire tablet marks Amazon's most aggressive attempt yet to undercut Apple, which has been the market leader since its first iPad went on sale five years ago. The least expensive iPad Mini, which has an 8-inch screen, sells for $270.
 
Amazon.com Inc. isn't trying to persuade anyone that its cheap tablet matches the quality of its own sleeker, higher-priced Fire HD alternatives, let alone the top-selling iPad line.
 
But the Seattle company is counting on the new tablet's low price to encourage more people to buy a device that will hook them on watching video, reading books, playing games and shopping on a computer that's easy to carry wherever they go.
 
In the process, Amazon is hoping consumers will buy more digital goods and merchandise from its store while also subscribing to its $100-per-year Prime service that offers a mix of videos, music and free shipping.
 
"Our tablet focus is in and around content consumption," said David Limp, Amazon's senior vice president of devices.
 
As with its previous low-priced tablets, the new Fire device will show ads on its screen saver. Avoiding the ads will cost an additional $15.
 
The discount tablet will debut amid a slump in the sale of the devices. The downturn suggests consumers who already own a tablet see little need to upgrade and those that don't have one either aren't interested in the devices or can't afford one.
 
Apple's iPad sales have been declining since 2013, spurring the company to take aim at selling more of its tablets to corporate customers and government agencies. Industry wide, worldwide sales of tablets are expected to fall 8 percent this year, according to the research firm International Data Corp.
 
Amazon is hoping that the low price of the new tablet will be so appealing that people will stock up on the devices and have them scattered around the house. As a prod, it plans to sell a six-pack of the 7-inch Fire tablets for the price of five, or $250.
 
Although the new tablet is cheap, Limp boasted it is far superior to other discount tablets that are "something you wouldn't want to give your worst enemy, let alone a family member or a kid."
 
Amazon is promising the discount tablet will have decent processing power, good color saturation and seven hours of battery life. A more durable version designed for kids will come with a blue or pink bumper and a 2-year replacement warranty if it's broken for any reason. It will sell for $100.
 
Amazon also unveiled updates to larger, more expensive tablets and its devices for streaming Internet video to television sets as it gears up to battle Apple and other gadget makers for the flurry of electronics sales that typically accompanies the holiday shopping season.
 
Apple also has shown off its latest iPhone, an iPad with a 12-inch screen and a long-delayed update of its TV-streaming box for Internet video and music.
 
Amazon tried to counter the iPhone's popularity with its own smartphone last year, but it never caught on. The company no longer sells its Fire phone, though it's still available in other online stores.
 
Despite the phone's flop, Limp insisted "there's a lot of good things happening across (Amazon's) device business."
 
The company's holiday line-up includes a more durable 8-inch Fire HD tablet with faster processing speeds than last year's model that will sell at prices beginning at $150. An upgraded 10-inch Fire HD tablet will sell for $230, or 42 percent less than the least expensive $400 iPad with a comparable display size.
 
Amazon is adding a remote control with a voice-activated search option to its Fire stick for Internet video streaming. The streaming stick will sell for $50, up from $40 for last year's version without voice-recognition technology.
 
Amazon's Fire TV box will now be able to stream ultra HD video with technology that is also supposed to deliver a better picture to screens with standard HD, too. It will sell for $100 compared with $150 for the new Apple TV box that is scheduled to go on sale at the end of October.

Source URL: https://www.tweentribune.com/article/teen/amazon-offers-tablet-computer-50/

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CRITICAL THINKING QUESTION
How does Amazon keep the price of its tablet low?
Write your answers in the comments section below


COMMENTS (27)
  • jaredl-hub
    9/28/2015 - 12:42 p.m.

    Amazon manages to keep its prices low because they offer deals such as the six-pack for the price of 5. They offer decent deals and cost not too much extra for things life safety warranties, kid bumpers, no ads, or even Amazon prime for $100 a year. They make small revenue with products based around the tablet itself and that lets them keep the price low so you have to pay more to get more.

  • hannahk-hub
    9/28/2015 - 12:43 p.m.

    They use advertisements on the screensaver that you can only get rid of for $15. They also believe that by keeping the price low, it will encourage customers to purchase more than one device to keep around the house as well as buy other, slightly more expensive Amazon products with more features.

  • jacelynd-hub
    9/28/2015 - 12:44 p.m.

    Amazon keeps the price of its tablet low by having other products that are worth more money. For example, they plan to launch a more expensive version of the cheap tablet for double the price. Seeing how good the cheap tablet is will encourage buyers to purchase more Amazon products. Also, displayed on the screen will be advertisements that will most likely bring in more revenue for the company. In order to get rid of said advertisements, the consumer will have to pay an additional fee of $15. Bundles of the tablet will be sold that also give a consumer incentive to purchase the tablet since you can have multiple devices in the same house. All of these factors allow the company to keep the price of its tablet low.

  • billj-hub
    9/28/2015 - 12:44 p.m.

    I think that they should be able to sell easy if they are in high demand. The products are cheaper and a lot better than the apple products. Most families can not afford the expensive apple products and this is showing that it is more affordable and it works better.

  • andrewr-hub
    9/28/2015 - 12:44 p.m.

    Amazon keeps the price of the tablet low by attracting more customers with its low price. The tablet is cheaper than others and is more affordable than other devices. Amazon can afford to keep the low price of the tablet because they make their money through the $15 add block fee or the six for the price of five deal. They manage how much they can sell it for in addition with other deals to make sure they don't lose money.

  • kaylae1-hub
    9/28/2015 - 12:45 p.m.

    Amazon keeps the price of its tablets low by using profits from other items. They hope this tablet will sell well due to its low price and they will profit form it. They will also continue to provide other services that they will gain from. Amazon charges for the removal of adds and Amazon Prime. Amazon Prime itself costs more than this tablet, they will profit greatly if enough people buy it.

  • tiffanyg-hub
    9/28/2015 - 12:48 p.m.

    Amazon keeps the price of it's tablet low by adding optional apps that you have to pay for that make up for the low priced tablet. An example of this is the app for shutting of the electronics in the house. There is also a 2 year warranty with the tablet that keeps it low.

  • johnj-hub
    9/28/2015 - 12:58 p.m.

    I think want Amazon is doing is great because this can help families that have low income and can afford something for their family and love ones.

  • ravend-bag
    9/28/2015 - 06:21 p.m.

    Amazon keeps the price amazingly low in hopes of lots of buying. That is very dangerous to drop a price like that. I could fail and ruin the whole business.

  • julianc-bag
    9/28/2015 - 11:19 p.m.

    Yes I think that we could use these in the classroom. Yes we could find all the research we would need.

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