Toys R Us said Monday it plans to launch its own tablet computer, called Tabeo, aimed at children on Oct. 21, a low-priced entry into the increasingly crowded tablet business.
The news comes ahead of the holiday season, which can account for up to 40 per cent of retailers' annual sales. Toys R Us has focused on exclusive toys rather than discounts as it faces tough competition from online retailers such as Amazon.com and discounters such as Wal-Mart Stores.
The seven-inch touchscreen tablet comes with 50 pre-installed apps selected for children, including games such as Angry Birds and Fruit Ninja, and a book app called istorybooks. It will retail for $149.99, is equipped with WiFi and runs on Google Inc.'s Android 4.0 operating system.
Toys R Us sells other electronics including Apple's iPad, but this is its first store-brand tablet. The Tabeo's main competitors include LeapFrog Enterprises' LeapPad, one of the biggest hits last holiday season, and VTech's similar InnoTab.
Analyst Sean McGowan said it is hard to say how a new kid-oriented tablet will fare since the market is so new.
Other analysts said the Tabeo's price tag may cool sales in tough ecnomic times.
