Apple introduced the new iPad Air as a $499 starting price tablet alongside an iPad mini with Retina display for $399.
The MyTablet will enter the highly competitive market for low-price tablets, but undercuts the price of the rival Hudl from Tesco by £20.
Manufacturers, including Toshiba and SK Hynix, are poised to reap the rewards of soaring demand for cut-price tablets and smartphones in China, the world's biggest smartphone market, and the emergence of Chinese mobile device makers like Huawei Technologies.
The firm's report also said current iPad sales would "come under pressure" during the holiday season as a result of two aggressively priced tablets, Amazon's Kindle Fire and Barnes & Noble's Nook.
With potentially aggressively priced tablets and a decent payments system in tow, Google should be able to lock up this new revenue stream pretty tightly.
IDC, however, points out that a longstanding fact about Apple: it's typically not concerned with market share erosion because a lot of it is based on cheaply priced tablets, which inevitably impact the margins for its competitors.
"We have seen some very competitively priced tablets from HP, RCA, E FUN and many others, and they are all eating into Amazon's share".
The low-price tablet trend has already benefited Dixons and Argos, whose Christmas takings were lifted by strong demand for cheaper tablets.
With the PC industry facing mounting pressure from low-price tablet computers and smartphones, Intel executives said that the company planned to pursue both those areas.
"We think this year's top-selling tablet will be the 32GB Google Nexus, as Google's competitively priced tablet is trying to take a piece of Apple's market share," said a spokeswoman for the website.
Although the explosion of the low-price tablet market has been linked to retailers' efforts to boost sales of digital media, Argos' lack of online streaming services (such as Tesco's Blinkbox, which is integrated directly into the Hudl) suggests it is simply trying trying to muscle in on Christmas tablet sales.
