According to tech industry analyst Tim Bajarin, Amazon might sell the upcoming tablet very cheap and still make profit in the long term. Berjin stated in a interview a few days ago that the estimated manufacturing cost of the Amazon Tablet will be around $300, information from different sources. Amazon then might cut down the price and customers will be paying as little as $249 for the slate.
Even though the big retailer will loose a lot of money through this technique, it will make more by selling videos, songs, cloud storage and other type of material that Amazon is offering.
“By my guestimates, Amazon would make back that lost $51 within six months and reap a profit of anywhere from 10 to 30 percent on the tablet over the last 18 months of the device’s accounting period,” wrote Bajarin.
Of course, this is just an opinion but it seems logic for Amazon to ship a device through which the customer can after buy content, pretty much like the Kindle e-Reader performs.
“When measuring by units shipped, this method could make Amazon the king of Android tablets very quickly,” Bajarin wrote. “In fact, I would go as far as to say that it could ‘own’ the Android tablet market.”
We are eagerly awaiting to see Amazon’s step regarding the price of the tablet.
Via : Cnet