Cheap Tablets Will Make Kindle and Nook More Affordable

I’m glad I haven’t bought a Kindle or a Nook. I noticed today on Amazon that Archos has several tablet computers running Google’s Android OS, with the least expensive unit priced competitively against the e-readers. The Archos 7 8GB Home Tablet only costs $192, compared to $189 for the Kindle. A company called Augen is selling its own Android-powered faux iPad for $150.

This isn’t an endorsement of these devices. Judging from the reviews, the Archos tablets need to ripen for another release or two. But these are the first Android tablets to hit the market. Word is that Motorola is releasing its own Android-powered tablet in November.

Even before the iPad imitators hit the market, Kindle and Nook were in trouble: Apple’s iPad outsold Kindle in just three months, despite the iPad’s heftier price tag.

Why is all this significant? Because you can read Kindle books on Android, just like on a Kindle (or a PC, or an iPad.) Why spend between $150 and $200 on a device that can only read books and play music, when you can spend the same cash for a multimedia device with a full operating system? True, the eInk technology on the Kindle and Nook eliminates the screen glare that can strain your eyes on an LCD screen. Personally, I’d trade a little readability for a fully functional computer than can stream video, play multimedia, and run games in addition to displaying text.

This doesn’t mean e-readers will disappear. I’d gladly buy a Kindle – if it cost less than three figures. With cheap tablets on the horizon, I’m betting you’ll see sub-$100 Kindles before the summer of 2011.