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.
"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.