Amazon to Release $50 Tablet as It Struggles to Sell Pricier Devices: Greg Bensinger:
Mr. Bezos had set an internal goal of the $50 price tag for versions of both the Fire tablet and Kindle e-reader, viewing the rock-bottom prices as a crucial lure for a more cost-conscious group of buyers, the people said. But the e-reader screen technology from its vendors ultimately proved too expensive to drop the retail price, the people said. Amazon’s cheapest Kindle sells for $79.
This is probably the space Amazon should be playing in – not high-priced phones. In terms of what you’ll get from a $50 tablet, that’s another matter… But the $50 Kindle would be a huge hit, no doubt.
Also worth noting that Amazon couldn’t hit price targets before now because of their screen vendors – wonder if it prompts them to move more things in-house, Apple-style.