Online market research firm YouGov predicts tablet devices will need to crash in price to £250 to make them viable in the UK.
According to YouGov, the launch last week of the Amazon Kindle Fire is set to escalate the already-fierce tablet war and could undercut all comers to create a two-horse race between Amazon and Apple.
With US launch price for the Amazon Kindle Fire set at $199 compared with the iPad 2 at $499, YouGov expects the same pricing differential in the UK and other global markets.
"Apple is far and away the current UK market leader in terms of brand awareness, preference and price," said Russell Feldman, Associate Director for Technology and Telecoms Consulting at YouGov.
"But the introduction of the Amazon Kindle Fire, with its compelling features and even more attractive price, will make it very hard indeed for other players to compete. The Kindle Fire benefits not only on price and specifications, but also in the value and trust consumers have in the Amazon brand.
"What's more, it has the potential to be a major game-changer, given the depth of Amazon's downloadable content as well as its burgeoning application store - something that has underpinned consumers' loyalty to Apple over other tablets running an Android OS."
Computer Weekly comment
The fact that HP's defunct TouchPad has been selling for £89 and £115 shows consumers are willing to buy these devices if the price is right. The original Kindle is a one-function device. The Kindle Fire is multi-function, but primarily a handheld Amazon shop-front. Apple will remain a premium product, which leaves Android. Charging a premium does not make sense, unless the device is Sony or a similar high-end brand. Could there be an Android tablet pricing crash? As YouGov stated, they will definitely need to be cheaper, to offer something compelling that fits between the Amazon Kindle Fire and the Apple iPad.