On Wednesday, Sept. 28, Amazon, the world’s largest internet retailer, is expected to reveal something that might end up threatening Apple’s legendary iPad… an Amazon Tablet.
The $250 tablet seems to already be scaring Apple, which seems evident due to the fact that the company has reduced orders from its Taiwanese manufacturers for new Apple iPads by an estimated 25 percent, as claimed by a JPMorgan Chase analyst whom was cited by Bloomberg.
Other analysts have cited the rather aggressive initial pricing of the Amazon Kindle as evidence that we can expect a similar cost for a tablet device launched by the company.
Amazon has not announced any information in regards to the tablet, but BGC partners analyst Colin Gillis told Reuters that “Wednesday is tablet day.”
Earlier this month the TechCrunch blog said that the Amazon tablet will also be called “Kindle,” and that it will be a 7-inch device that features a full-color touch screen, and that will run using Google’s Android software.
Since the Apple iPad’s launch in April 2010, the device has made over 29 million sales. Regardless of its high volume of sales, Amazon is in a good position to challenge the market leader, due to the popularity of the Kindle and the large range of media — movies, music, etc. — that Amazon is well known for selling.
Colin Sebastian, Robert Baird & Co. analyst, thinks that Amazon’s new device could sell at least 3 million units in its first year.
Rumor has it that Apple could be releasing the iPad 3 as early as 2012, which might end up topping Amazon’s tablet if it does exceptionally well.
“We think the next potential threat to Apple’s tablet dominance is not until late 2012 when Windows 8-based tablets could hit the market,” a second JPMorgan Chase analyst predicted just a week ago.