Techcrunch is reporting that Amazon might be set to sell a $99 tablet sometime later this year.
This news comes on the heels of Kindle Fire HD 8.9-inch price drop from $299 to $269 for the WiFi model, and from $499 to $399 for the LTE version. And while a price drop is sometimes an indicator of an impending new product – an attempt to clear old stock – I’m gonna go out on a limb and suggest that Amazon is making way for an all you can eat music subscription analogous to that of Spotify.
A music subscription service, much like their Prime service, would help offset the upfront hardware cost since payment is recurring on a monthly basis. Moreover, Amazon already has a fair bit of data about their users when it comes to music consumption as well as attrition rates in terms of subscriptions. So in theory, a $99 Kindle may be a more profitable endeavor than their current tablet line up, especially if they can capture a wider swath of customers and keep pace with Apple if they can snare consumers into their ecosystem.
Unfortunately, there are no hard specs on the new Amazon tablet, but word is that it will sport a 7-inch screen with a 1280×800, and a TI processor of some sort. Suffice to say it should be comparable to that of the current 7-inch HD Amazon Kindle, though at a lower price point Amazon is bound to slim down the feature set.
However, it’s important to note that Amazon denies the rumored price drop.
We are already at the lowest price points possible for that hardware.