A cut-price Amazon Android tablet would be the number one threat to Apple’s domination of the tablet market, according to industry analysts.
A report from Forrester thinks that if the Kindle-maker’s tablet could undercut the iPad in the price department, then it could sell five million devices before the year is out.
"Even though Amazon taking on Apple is a bit like David taking on Goliath," says Sarah Rotman Epps, the report’s author, "Amazon’s willingness to sell hardware at a loss combined with the strength of its brand, content, cloud infrastructure, and commerce assets makes it the only credible iPad competitor in the market."
"If Amazon launches a tablet at a sub-$300 price point — assuming it has enough supply to meet demand — we see Amazon selling 3-5 million tablets in Q4 alone."
Amazon ‘synonymous’ with Android
While the launch of the device is yet to be confirmed, many expect an announcement to be made in October.
The Forrester report reckons that because Amazon has proved with the Kindle that it is unconcerned about making a loss on the hardware itself, it has the ability to disrupt Apple.
"Apple sells software and services, but the lion’s share of Apple’s revenue still comes from hardware, which makes it vulnerable to a company, such as Amazon, that isn’t seeking profit from hardware sales.
"Amazon and Apple’s relationship, already fraught with Apple’s policy changes on content sales, will become even more strained."
"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."
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