Rise of the cheap tablet: First Tesco, now Argos becomes the latest store to launch a cut-price device - and it costs less than £100

• The 7-inch MyTablet costs £99.99 and will be on sale from 16 October
• It runs Google's Android Jelly Bean and comes with 8GB of storage
• The device is aimed at teenagers with parental controls enabled by default
  

By Victoria Woollaston

Published: 04:51 EST, 15 October 2013 | Updated: 08:40 EST, 22 October 2013

High-street chain Argos is jumping on the budget tablet bandwagon by launching its own low-cost device in a bid to undercut rivals Tesco, Amazon and Google. 

The 7-inch MyTablet costs just £99.99 - the same price as the Kindle Fire, £20 cheaper than Tesco's Hudl and Amazon's Kindle Fire HD, and £100 cheaper than Google's latest Nexus 7.

Argos has said the device is aimed at teenagers and will come with parental controls enabled by default when it goes on sale Wednesday.

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Datawind's tablet is the latest cut-price device to go on sale in the run up to Christmas. Argos recently launched is 7-inch MyTablet, pictured, for £99.99. It runs Google's Android Jelly Bean and has 8GB of memory

The high-street retailer said the proportion of Argos sales via mobile devices, which include tablets, is now 15 per cent.

MyTablet runs Google's Android Jelly Bean operating system and comes preloaded with apps, including Facebook and Twitter, plus games and Skype.

'Millions of people have bought tablets during the last year but there is still around 75 per cent of the UK population without one.

'We know that tablets will feature heavily on Christmas lists this year,' said John Walden, managing director of Argos.

'At just £99.99 the Argos MyTablet is highly competitive with a great specification.'

A spokesman added the device has been designed 'with teenagers in mind offering all the functionality of a traditional tablet with built-in parental controls for younger users.'

It is powered by a 1.6GHz dual-core processor and has with a 1024 x 600 resolution LCD screen - giving the MyTablet a pixel density of 169. Argos claims it has a five-hour battery life.

Although this pixel density is lower than Google's 323 PPI and Tesco's 237 PPI, it is six points higher than Apple's iPad mini. 

MyTablet comes with 8GB of memory - half the basic storage of other 7-inch tablets on the market - but does have a MicroSD port that supports an extra 32GB.

MyTablet is available in pink, pictured, and silver. It goes on sale 16 October and is powered by a 1.6GHz dual-core processor

Elsewhere, the device has a built-in 2MP rear-facing camera plus a low-resolution 0.3MP front-facing camera, and has Wi-Fi and Bluetooth.

After Apple dominated the tablet market for years, Google was the first major company to challenge the iPad and, in particular, the later iPad mini with the launch of its Nexus 7 by Asus.

It was a budget tablet that went on sale for £159, compared to the iPad mini's £269, without compromising on the majority of features.

The search giant launched a Nexus 7 successor earlier this year that cost £199 and came with the world's highest resolution screen.

Tesco then took it a step further with the launch of its Hudl tablet last month.

The 7-inch Hudl costs just £119 and beats the majority of other budget tablets in terms of screen pixel density.

It could even be bought for as little as £60 when purchased with Clubcard vouchers. 

At the launch, Tesco insisted it had not cut corners to produce the budget tablet and claimed it would beat similarly priced competitors ‘hands down’.

The Argos MyTablet is available from 16 October from the Argos website, through the Argos app or high-street stores.

Argos' plans to pitch this tablet at younger people is a growing trend in the tablet market.

A survey by OnePoll, commissioned by Justin's World - apps by Justin Fletcher aimed at children - found tablets have become a must-have accessory for toddlers, with 50 per cent of the UK’s two and three-year-olds using one. 

It also found 61 per cent of three-year-olds and 38 per cent of two-year-olds play and learn on iPads.

WHAT DOES THE MYTABLET MEAN FOR THE MARKET?

Tablet usage is often by more casual users of technology, who are likely to be using their device for social media, games and other lightweight means. Most people want access to this type of technology but can't invest in a phone/tablet that gives them much more than they need. The budget alternative may be just what they have in mind.

Commenting on the rise of budget tablets, Stephen Ebbett, global director of gadget insurer Protect Your Bubble, told MailOnline: 'There will always be a market for luxe tablets like the iPad, favoured by early adopters and professionals, just as there will always be a market for budget, child-friendly slates.

'The average British family doesn't really care about having high-resolution screens, as long as they keep their kids quiet on long car journeys.

'That's why bargain-priced slates from trusted budget brands are worthy contenders for the booming two-tier tablet market. It's likely we'll see more sub £100 tablets emerge, but it's unlikely they'll match the quality of Hudl and MyTablet.'

While Oliver Folkard, technology expert at uSwitch.com, added: 'Following the launch of Microsoft’s pricey Surface slates and Tesco’s pocket-money priced Hudl, Argos’ effort is more evidence of how diverse the tablet market is becoming.

'With inevitable snobbery around retailer-branded devices, it's highly unlikely image-conscious teenagers will want to be seen out and about with an Argos or Tesco tablet. But young families who just want to keep kids entertained won't care.

'The Hudl and MyTablet have robust spec sheets, but are loss leaders for the retailers, so it's unlikely we'll see good quality entry-level tablets get much cheaper than £99.

'But such a low price tag could spell the end of the humble laptop for some consumers. Tablets are changing how and when we get online - and are truly portable. But it’s unlikely that cheap tablets will fully replace smartphones.' 

Tunde Cockshott, Creative Consultant at marketing and technology consultancy Amaze told MailOnline: 'Argos have hit the right price point. In this market the nuances of specs are less important than price. Okay, it is less powerful than the Tesco Hudl, but it is also £20 cheaper. Argos will heavily promote this through their channels and I expect TV adverts. I think they may be onto a winner.'

Tony Jiang, associate strategist at digital agency TH_NK added:  'With the two devices being released at the same time and at a similar price point there's the obvious danger they could split the market opportunity.

'Tesco seems to be better placed to generate revenues from the budget tablet space with all Hudl devices coming pre loaded with its film subscription service Blinkbox. And given their marketing power it's hard to see how the Hudl won't be on everyone's gift list come Christmas.'

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