A new report by PC Mag is suggesting that Amazon may be ready to take a revenue hit on its new tablet range and could well offer it at a cut price.

In what would be a Trojan-Horse-style strategy, PC Mag is suggesting that Amazon could offer the device as a loss maker but make its money back on the apps, music and ebooks you would buy for the product.

Amazon has created a pretty strong eco-system over the last year, with the launch of the Amazon Cloud Drive, the Amazon Appstore and in the UK the acquisition of LoveFilm.

Amazon tablet

The Kindle, for all its success – it is still Amazon's best-ever-selling product – has only really tapped into Amazon's extensive ebook library, so there is room for the company to launch a fully fledged tablet that makes use of all the goodies Amazon has on offer.

As PC Mag says in its report: "If Amazon provides a product that is sold under cost with the goal of making up the rest of the cost and profit from apps, services, and even advertising, it could give all of the other Android vendors a serious run for their money."

And if this happens, then we may well have a real battle on our hands in the burgeoning tablet market.

Via SlashGear