Amazon Tablets to Be Aggressively Priced at $350, $450?

After leaks and speculations behind two Amazon tablets–codenamed Coyote and Hollywood–it is now rumored that those tablets will be aggressively priced when they enter the market at $350 and $450. Though the entry price of the 7-inch model at $350 would be more costly than the $250 Nook Color tablet from rival bookseller Barnes & Noble, the Amazon Coyote tablet would be more feature-packed with a dual-core Tegra 2 processor and would probably be more open than the curated reading experience of the Nook tablet.

A report on PC Mag suggests that the more power-packed quad-core Tegra 3-powered 10-inch Android tablet may hit the market for $450, which is more aggressively priced than the WiFi-only Xoom at $600 and matches some of the low-cost offerings by Acer and Asus today–the Eee Pad Transformer and the Iconia Tab A500, both dual-core Tegra 2 models, are retailing for about that price.

Amazon already is beginning to roll out cloud-based services that would help create a good experience for its tablets. It had launched the Amazon Appstore for Android, Amazon Cloud Drive and Cloud Player for streaming music and storage, and also has the Kindle store for Kindle e-books.

The company’s entry into the tablet space may help bring Android tablets mainstream. So far, despite the compelling features, re-vamped desktop-like UI, and advanced hardware of many Android 3.0 Honeycomb tablets, the platform is still struggling to compete against the market-leading iPad tablet from Apple–that device runs the iOS platform.

Recently, to address price-conscious Kindle reader shoppers. Amazon had begun to sell a low-cost, ad-supported Kindle reading device. It’s unclear if the company may attempt to pursue a similar strategy for a tablet offering.

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