Amazon could sell 3 million to 5 million tablets in the first quarter alone, Forrester predicts.
What is that magic price of Amazon’s tablet? Forrester says that if Amazon releases a 9-inch LCD touchscreen tablet for $299 and has enough supply to meet demand, it could outperform Apple’s first quarter with the iPad, which moved 3.27 million units.
Amazon should be able to price it that low because, like with the Kindle ereader, the company stands to profit from selling services and goods on the device, so it can afford to sell hardware at a loss, Forrester says. The lion’s share of Apple’s revenue, on the other hand, comes from sales of the iPad itself.
That's right. Amazon is a money making machine, they will be to sell these tablets almost at cost, cause at the end, they will lead the marketplace for Android games and generate additional revenue from new customers acquired via the purchase of a tablet.
They win all the way.
Now, will the tablet be so much better than an iPad 3? That remains to be answered.