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A $99 Amazon tablet would be good for consumers, bad for everyone else

Jared Newman | March 21, 2013
When Amazon undercut its rival tablet makers in 2011 with the $200 Kindle Fire tablet, the company was just getting started with its price-cutting strategy.

Finally, it's just not true that consumers are turned off by premium products now, as Apple has repeatedly proven. After the iPad mini debuted, Apple was selling those slimmed-down tablets as fast as it could make them, and overall iPad sales are still up despite the existence of lower-cost competitors. The truth is that great hardware with great software and services can still sell at a fair price. The reality for many hardware makers is that they offer none of those things, so the price is irrelevant.

If Amazon releases a $100 tablet, it might spell more danger for other hardware makers. It might force Google to release a cheaper tablet of its own, and it might even steal a few sales away from Apple. But it wouldn't decimate the tablet market as we know it. It would only make it better.


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