WAYNE, N.J. (AP) -- Toys R Us said Monday that it plans to launch next month its own tablet computer aimed at children, introducing 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 percent 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 including Wal-Mart Stores Inc.
The Toys R Us 7-inch touchscreen tablet, called "Tabeo," will come with 50 preinstalled apps selected for children, including games such as Angry Birds and Fruit Ninja, and a book app called istorybooks.
The table will be equipped with WiFi and run on Google Inc.’s Android 4.0 operating system. It will be launched on Oct. 21 and retail for $149.99.
Toys R Us sells other electronics including Apple Inc.’s iPad, but this is its first store-brand tablet. Tabeo’s main competitors include LeapFrog Enterprises’ LeapPad, one of the biggest hits last holiday season, and VTech’s similar InnoTab.
The introduction hurt shares of Leap Frog, which fell 80 cents, or 8.7 percent, to close Monday at $8.35. The stock is still up about 49 percent since the beginning of the year.
Children’s tablets are increasingly popular. In addition to the LeapPad and the InnoTab,
Meanwhile, the adult tablet market has been heating up. Last week, Amazon unveiled a $499 4G high definition Kindle, a $299 Wi-Fi HD model and a smaller 7-inch Kindle starting at $199. The most popular tablet remains Apple Inc.’s iPad, which starts at $399.