Munster: The REAL reason behind Amazon's $50 tablet

Amazon's strategy regarding its new tablet does not center around sales, Piper Jaffray analyst Gene Munster said Thursday.

"It's about trying to enable a lot of their other products, including Prime," Munster said in a CNBC "Squawk Alley" interview.

Amazon TV with remote and controller.
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The e-commerce giant unveiled a slew of new products on Thursday, including a $50 tablet, considerably cheaper than Apple's iPad mini 2 (its cheapest model), which cost about $270.

"A $50 price point has never been achieved; it's basically a smartphone without a radio, but basically the basic strategy is to drive adoption of Prime and their other content services," Munster added.

Munster also said Amazon's new product would provide a small spark for the lagging tablet market, "but it doesn't change the basic theme that people are buying bigger phones."

Amazon's stock traded higher in early afternoon trade.