He called the $50 tablet a "gateway drug" for Amazon to attract new customers to Prime, a $99-a year shopping program estimated to have around 40 million global members.
View galleryThe new Amazon Fire tablet six pack is displayed during …
The new Amazon Fire tablet six pack is displayed during a media event introducing new Amazon product …
The potential to draw more customers may appease investors but could prove costly if Amazon fails to sell large volumes, analysts said.
Amazon took a $170 million write down in the third quarter last year after it struggled to sell its inventory of $200 Fire smartphones. Amazon has said it does not plan to profit from devices but to drive more customers to services through the gadgets.
Amazon on Thursday also rolled out a line of new, 8-inch and 10-inch Fire HD tablets and revamped Fire TV gadgets.
The $99.99 Fire TV set-top box integrates its cloud-based virtual assistant Alexa, allowing viewers to check the weather, look up sports scores and play music.
Amazon said viewers will soon be able to control home appliances through Fire TV, a function available on Echo, the company's personal aide gadget that can control thermostats and lights.
(Corrects second paragraph to show screen is 7 inches diagonally, not wide)
(Reporting by Mari Saito; Editing by Miral Fahmy)
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