Amazon's new Kindle rachets up e-reader price battle
Amazon.com's new Kindle could stoke a price fight among e-readers (see video below)
IDG News Service - Amazon.com's announcement late Wednesday that it will launch a new version of its Kindle e-book reader in August could further stoke a price battle in the e-reader market.
E-book reader prices have been slowly falling for months but price cuts began to gain pace since late June, when Barnes & Noble cut the price of its Nook reader and introduced a new model at $149.
The price made it the cheapest e-book reader from a major retailer. It still holds that distinction today, but might not hold it much longer.
Amazon.com's third-generation Kindle will come in two models, one with 3G wireless and one without, and the cheaper of the two will cost $139 when it goes on sale on Aug. 27.
It's an impressive price decline for the Kindle, the cheapest model of which cost $259 in the middle of June. In late August, barely two months later, the Kindle entry point will have dropped by almost half.
"At that price it's now almost an impulse buy for some consumers," said Tim Renowden, an analyst at Ovum in London. He said he wouldn't be surprised if Barnes & Noble further cut the price of the Nook, but that the competition would most be felt by lesser-known brands.
Many of these companies have used price as a key selling point, but with the Kindle so cheap it will be hard to compete when Amazon.com offers additional benefits, such as tight integration with its online store and a huge library of books.
The lower price also increases the gap between e-readers and a slew of tablet PCs that are now coming to market. Led by Apple's iPad and including several promised machines based on Google's Android OS, the tablets offer many more functions than e-readers but are heavier, have much shorter battery life and are typically more difficult to read for long periods of time.
Amazon.com is banking on the lower price translating into more sales, and there is evidence that could already be happening.
The Kindle had already become the best-selling item on Amazon.com for two years running and last week the company said it had "reached a tipping point with the new price of Kindle."
"We're seeing very, very strong [Kindle] device growth and we're seeing very, very strong content growth," Thomas Szkutak, Amazon.com's chief financial officer, told investors during a conference call.
On Wednesday Amazon said it had sold out of the $189 model.
But the company has to date been cagey on just how well the Kindle has been selling and hasn't released detailed sales figures.
Eye on e-books
- E-reader decline prompts user debate over e-reader vs. tablet
- Last chapter for e-readers?
- Nook Simple Touch with GlowLight: An e-reader for night readers
- Bluefire launches Android-ready e-reader software for independent booksellers
- More Americans own e-readers than tablets, survey finds
- First look: The Kobo eReader Touch Edition
- Amazon: E-books now outsell print books
- Creating an e-book: Tips on formatting and converting your document
- Kindle for the Web demos at Chrome event
- Update: Amazon to demo Kindle for the Web on Tuesday
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Three Best Practices to Help Government Agencies Overcome BYOD Challenges This paper highlightschallenges facing government IT in a BYOD environment and discusses strategies for network preparation, ongoing support, and securing information to enable...
- 3 Steps to Content Sharing and Collaboration ft. Forrester Research Consumer sync and share tools help people access and send personal files, but smart IT leaders know that businesses require more than just...
- Empowering Your Mobile Workers A modern mobile IT strategy is no longer an option, it is an absolute necessity. Here's how some of the nation's most progressive...
- Omnichannel: From Buzzword to Strategy Customers demand a seamless experience across channels, especially mobile. Read this whitepaper for a research-based framework for using omnichannel for higher customer engagement.
- Live Webcast On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Live Webcast Unmasking the Differences between Consumer and Enterprise File Sync & Share The consumerization of IT combined with the rapid pace of the modern mobile workplace is forcing enterprise IT teams to evaluate file sync...
- Live Webcast Workforce Mobilization for Improved Productivity A mobility research director from Aberdeen discusses reasons for extending legacy applications to mobile devices, and an integration strategist from Attachmate shows how...
- Getting Ready for BlackBerry Enterprise Service 10.2 Find out how BlackBerry® Enterprise Service 10 helps organizations address the full spectrum of EMM challenges, while balancing the needs of both the...
- Containerization Options: How to Choose the Best DLP Solution for Your Organization This webcast outlines a framework for making the right choice when it comes to containerization approaches, along with the pros and cons of... All Mobile/Wireless White Papers | Webcasts
As emerging technologies evolve they often find an initial niche in highly specialized scenarios, or in specific industry verticals, before expanding to wider areas of applicability. Within these initial niches, the early adopters can be anything from digital enthusiasts to fashionistas, or they can be folks simply using the technology because it serves a specific need extremely well. (free registration required) more