Codebreaker

Amazon could be nipping at Apple’s heels when it comes to tablet sales

John Moe Aug 30, 2011
Codebreaker

Amazon could be nipping at Apple’s heels when it comes to tablet sales

John Moe Aug 30, 2011

For a product that doesn’t exist, whose arrival date is undetermined, that doesn’t have a name, that doesn’t even have official confirmation of its existence from the company supposedly making it, the Amazon tablet is a HUGE HIT! Forrester Research is estimating that the allegedly impending Amazon tablet could sell 5 million units in the 4th quarter of this year. That depends on the price point coming in at $300 or less, which would be bonkers cheap for a tablet. So cheap, in fact, that whoever made such a thing would likely lose money on each sale. EXACTLY. Amazon is historically willing to take a loss on sales in order to expand reach and lead to other sales. The Kindle is screamingly cheap for what it does but what it does is motivate you to buy more e-books from, guess who, Amazon. The new tablet would reportedly run on Android and Amazon has had an Android app store up and running for a while. Remember, while every other tablet maker has drowned this year trying to measure up to the iPad, Amazon has done just fine with the Kindle. If they make what’s essentially a tablet Kindle that functions as a computer AND can keep being a Kindle, it’s not likely that they’d hurt Apple’s iPad but they could live alongside it quite comfortably.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.  

Need some Econ 101?

Our new Marketplace Crash Course is here to help. Sign-up for free, learn at your own pace.