According to a rumour from the Wall Street Journal, Amazon is readying a $US50, 15-centimetre Android tablet for a launch before Christmas this year. The company hasn't had runaway success with its existing line of Android tablets, so it's clearly hoping that cutting the price can get a few more people on board.
The company's pricing strategy for its own-brand electronics has pretty much always been to sell the hardware for no profit, and then try to make money selling services. Presumably, the idea of a $50 Android tablet is that you'll use it to buy stuff off Amazon, read books, and watch your Amazon Instant Video™ subscription.
But for $50, the tablet will have to be kind of crap. You just can't make something with a good screen, enough storage, and a fast processor for that little money. But for $US50, will that matter? I guess we'll find out on December 25th.