(Adds researcher comment, share price)
By Mari Saito
SAN FRANCISCO, Sept 17 (Reuters) – Amazon.com Inc
on Thursday introduced a $50 tablet, a cost tab analysts said
was low adequate to set it detached in a swarming marketplace and pull more
customers to a online services.
The new Fire tablet, one of several new and upgraded devices
from Amazon, comes with a shade that measures 7 inches (17 cm)
diagonally and a front-and-back camera. It will start shipping
on Sept. 30.
“There’s one partial of a inscription (market) that’s growing
right now, and … that’s sub-$100 tablets,” pronounced Dave Limp,
senior clamp boss of Amazon devices. The company’s $99 Fire
HD was Amazon’s best-selling inscription final year, he added.
Analysts pronounced there were few allied tablets that cost as
little as a new Fire. Amazon will also sell a tablets in a
six-pack for reduction than $250.
“The doctrine we schooled from consumer wiring is that
when a marketplace matures, consumers go cheaper,” pronounced Forrester
principal researcher James McQuivey. “If you’re Amazon and we know
this is going to happen, we competence as good join in.”
He called a $50 inscription a “gateway drug” for Amazon to
attract new business to Prime, a $99-a-year selling program
estimated to have about 40 million members.
Shares of Amazon were adult 1.9 percent during $537.15.
The intensity to pull some-more business might damp investors
but could infer dear if Amazon fails to sell vast volumes,
Amazon took a $170 million write-down in a third quarter
last year after it struggled to sell a register of $200 Fire
smartphones. The association has pronounced it does not devise to profit
from inclination though wants to use them to pull some-more business to its
“They’re out of a phone business,” pronounced Tim Bajarin,
president of San Jose-based tech investigate organisation Creative
Strategies. “To be satisfactory that was a loyal mistake. The $50 tablet
is distant some-more vital to their business.”
Also on Thursday, Amazon also introduced a line of new,
8-inch and 10-inch Fire HD tablets and revamped Fire TV gadgets.
The $99.99 Fire TV set-top box integrates Amazon’s
cloud-based practical partner Alexa, permitting viewers to check
the weather, demeanour adult sports scores and play music.
Amazon pronounced viewers could shortly control home appliances
through Fire TV, a duty accessible on Echo, a company’s
personal help tool that can umpire thermostats and lights.
(Reporting by Mari Saito; Editing by Miral Fahmy and Lisa Von