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If it's not priced to move, the Amazon tablet had better bring some revolutionary, compelling and heretofore unseen 'got to have it' features to the tablet space.
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One obvious way for Amazon to sell their tablets - at whatever price - would be to follow the same "no computer needed" philosophy of the existing Kindles. For non-tech folks who just want to read - and read a lot - without having to know anything about computers - or even being required to own a computer - the Kindle was the first "self-contained" ereader that worked out of the box without requiring a PC - and was tied into the existing Kindle store - for one click purchases & impulse buys.
So - do the same with a tablet. Amazon has already established the required digital infrastructure to support a tablet - video, music, cloud drive, kindle books, app store, etc. - which all got pushed to the top of the menu on Amazon's main page. Yes - you can fully engage with Amazon digital content now on existing tablets. But for the tech-wary, or current Kindle-only owners who may be curious - launch a tablet fully integrated into the Kindle digital infrastructure - with "one-click" access to apps, music, movies, etc. No computer required. No computer knowledge required. All your stuff stored in the Amazon cloud. Keep & read all of your Kindle books. Add movies! Add music! Add cool apps! All you have to do is tap that "Buy Now" icon. Make the tablet work right out of the box - and have it locked into Amazon - which can supply all your digital needs. And supported by the legendary Amazon level of customer support.
And price it under an iPad.
This could be one way of transitioning Kindle-only owners who "only want to read" rather painlessly into the tablet arena.