A $50 tablet is currently in the works at Amazon to debut alongside updates to the company’s current tablet lineup, including the Fire HD and HDX. The 6-inch tablet will likely feature a lower-resolution screen, stripped down features and slower internal components. It will likely also be ad-supported like the company’s current 6-inch tablet, the Fire HD 6.
The tablet comes nine months after Amazon reorganized their Silicon Valley hardware unit, Lab126, after its Fire Phone bombed and forced the company to take a $170 million write-down on the failure.
Instead of trying to compete with the likes of Apple and Samsung (the Fire Phone was just as expensive as the iPhone 6 or Galaxy S6), Amazon may be aiming to capture the more price-conscious consumer. At $50, the tablet is $70 less than Samsung’s cheapest tablet offering, the Galaxy Tab 3 Lite, and one-sixth the price of Apple’s least expensive tablet, the $299 iPad mini 2.