It was only a few weeks ago that Tesco launched its Hudl tablet (pictured) and Argos has just launched MyTablet this week. It’s fair to say that everyone wants a piece of the tech pie. And the pie is not just for the tech giants. We are set to see more and more brands outside the tech sphere develop their own consumer electronics as an effective way to keep consumers close.
Amazon was one of the first brands to take tech into its own hands with the Kindle. Even Amazon has admitted that it makes little profit from the devices themselves but providing a medium to consumers that can help deliver Amazon’s online content – such as books and video – which have much higher profit margins, is clearly the strategy here. By offering consumers a device that costs as little as possible (which consumers will likely only buy once) to then purchase the company’s own online content over and over, Amazon is making a strategic move in both customer acquisition and retention.