The Tech Report spotted that Kmart is currently selling a 7" Android tablet from Augenus for as low as $150. This budget features Android 2.1 and is said to be capable of playing 720p video, although the display is only 800 x 480 pixels and there don't seem to be any video output ports. The device has an unnamed 800MHz processor, 256MB DDR2 memory, 2GB internal memory, a SD/MMC memory card slot, WiFi, and a rechargeable lithium battery.
The system runs a reasonably recent 2.1 revision of Google's Android operating system. With the included video player, Augen claims users can watch their favorite movies at 720p, suggesting some measure of decode acceleration may be present for HD video. There's no word on support for smooth Flash video playback, though.
According to the Kmart flyer, the budget tablet is only on sale until July 31, after which the price will climb to $170. The retailer is already having problems stocking the device, but it's promising rainchecks for anyone who drops into their local Kmart location with the tablet's SKU number in hand.