Current Honeycomb Android Tablets are not cheaper than iPad, Amazon aims to beat Apple at tablet pricing.
Rumors about the Amazon Tablet intensivy. A couple days ago the WSJ reported that Amazon is supposed to release the Kindle Tablet by October. Another report hints at 7 and 10 inch tablet sizes. Now the New York Times published a piece that tries to uncover the what the Amazon Kindle Tablet is going to be. According to the report Amazon had a difficult time to settle on Android as OS for their tablets. The feared the openess as users can use other content services on the Amazon tablet. A fear that is not really grounded in my opinion. Consumers love to buy on Amazon. Most Amazon tablet users will use the Amazon offering as they are the most convenient and likely the cheapest.
Amazon supposed to make the Amazon Tablet cheaper than the Apple iPad. The Amazon tablet therefore has only the bare minimum hardware specifications. For instance a camera is supposedly missing. This can be tricky. If Amazon cuts too much, consumers will see the iPad or other Android tablets as superior. The Amazon tablet would need to be really dirt cheap to gain traction then.
If Amazon releases a tablet that competes with the Motorola Xoom on most aspects at a price around $350 it is going to kill off all Android tablet competition and will hurt the iPad. I am super excited to see what Amazon is going to release.