Amazon to Release $50 Tablet This Holiday as it Struggles to Sell Pricier Devices

Amazon.com, Inc. plans to drop a new tablet worth $50 as it has struggled drawing customers to its pricier devices. The said tablet is said to be rolled out this holiday.

The Wall Street Journal reports that the Seattle online retailer is planning to release their $50 tablet that has a 6-inch screen. It can be considered one of the least-expensive tablets in the market, cutting the price of its current Fire HD 6-inch tablet half. The release of this device is just right for the holiday seasons, especially for buyers who want a simpler but more effective device that features basic tasks like streaming videos, online shopping, and browsing the internet.

Being too inexpensive could mean inferior screen quality, less battery life, and poor durability, compared to high-end products like Apple's iPad. Business Insider reports that the $50 tablet will also have a mono speaker. Besides the $50 device, Amazon will also release 8-inch and 10-inch tablets this year.

According to Gazette Review, Amazon Chief Executive Jeff Bezos has set a $50 price tag for Fire tablet and Kindle e-reader versions not long ago. However, the screen for this technology is not that cheap for this price range, which is why the cheapest Kindle is $79.

As Apple is set to reveal its new iPhone 6S, Amazon is pressured to come up with their game changer. Amazon, however, seem to have backed out from the smartphone market after releasing its Fire smartphone last year with the same price as the iPhone. Apparently, Amazon's Fire didn't match Apple's sales, even with its free year of Premium membership, which is supposed to be at $99.

Forrester Research analyst Frank Gillett said, "Will people tolerate a potentially inferior experience just because a tablet is $50?"

"Amazon has to be very careful about what they're giving up to get to that low price point," Gillett said.

Meanwhile, there are no clear reports yet whether the said device will feature advertisements as screen savers like other Amazon Fire tablets. What is known for now, is that the company's affordable device will be out this holiday.