If Amazon is willing to sell its new Android tablet for $300, it could sell up to 5 million units in the last three months of this year and take some of the iPad's market share, an analyst reported.
The $300 tablet computer would mean the Seattle-based company would be selling the computers at a loss, but could make its "mark," according to the Wall Street Journal. Sarah Rotman Epps, a senior analyst with Forrester Research suggested the $300 retail price. From her piece in Fortune:
The bottom line: A year from now, “Amazon” will be synonymous with “Android” on tablets, a strong second to Apple’s iPad. If you haven’t yet contemplated how Apple-Amazon tablet domination will change your product strategy, now is the time to plan and act.
In a post-Kindle world, Amazon's tablet computer will be a necessity to compete in the electronic book market. Apple, which has been accused of price-fixing e-books, is now its chief competitor. If the accusations against Apple are true, the Cupertino, Calif. company has worked hard to destroy the Kindle and Amazon's burgeoning e-book business, something that can only hurt consumers. Consumers need competition in tablet computers and e-readers to ensure innovation and lower prices.