Amazon heralds low-cost tablet growth; admits to uncertain use cases - Mobile World Live

Amazon heralds low-cost tablet growth; admits to uncertain use cases

30 SEP 2015

MediaTek Executive Forum 2015, London: David Limp, SVP of devices at Amazon, talked up the company’s success in the low-cost device segment, while acknowledging that in the case of its $250 tablet six-pack offer, it is unsure what is driving demand.

“It has way exceeded our expectations in terms of the number of customers that have already bought it. And we don’t know completely why this is happening yet. We think once you break the sub-$50 barrier with a branded, high-quality tablet, people are going to use tablets for new and different things in their household,” he said.

“It won’t be just a primary device. Give them to your kids. You might use it on your bedside table as an alarm clock. Put it in the back of the car as an entertainment system. We’re not sure, but we’re really exicted about what customers will do,” Limp continued.

Amazon announced the $50 Fire tablet earlier this month, driving prices down further from the $99 Fire HD 6 from last year.

“One of the things that is happening in the tablet market is that growth is not what it used to be. But there is one segment in tablets that is growing very fast – the sub $100 segment. And we recognised this a year ago with our Fire HD 6 tablet, and that product was our best selling tablet by far,” Limp said.

Interestingly, while highlighting Amazon’s digital efforts with e-readers, tablets and in the home, no reference was made to its Fire smartphone efforts – the first device in the line being a high-profile failure for the company.

Amazon’s new tablets begin shipping today.

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