Amazon Tablet to Sell for $171
There’s a rumor going around that the Amazon tablet, which will almost certainly be unveiled this Wednesday, will cost just $171. As odd a price as that sounds, it’s not entirely unexpected for Amazon; after all, this is the company that priced it’s ad-supported Kindle e-reader at $114. But it’s all speculation resting atop rumor. The Amazon tablet needs to position itself as a competitor to the Nook Color, which effectively established the price of a tablet e-reader at $250. So the Amazon tablet has to be priced at the same amount or lower, but to go lower would probably shrink the margin too much for Amazon’s liking. So we’re probably looking at a $250 tablet. At the same time, it’s clear that one of the big selling points of an Amazon tablet is that it’ll be tied closely with Amazon’s services. After all, besides shopping, Amazon offers video streaming, music, and cloud storage—and a tablet represents an opportunity to put these services in front of a whole new set of customers. One of those services is Amazon Prime, the company’s “preferred” tier that gives customers free unlimited two-day shipping. Besides fast-tracked orders, Prime also offers streaming of some video content, including the today’s addition of a bunch of TV shows and movies from Fox. Readmore
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