Mobile // Mobile Devices
News
6/21/2010
11:55 PM
Connect Directly
RSS
E-Mail
50%
50%

Amazon Cuts Kindle Price To $189

Within hours of Barnes & Noble announcing a price drop for its Nook electronic reader, Amazon responded with a price reduction.

Amazon slashed the price of the Kindle, just hours after rival Barnes & Noble announced it was cutting the price of its electronic reader.

Amazon's response Monday to B&N ushered in a new front in the e-reader battle: price. Soon after B&N said it would sell the Nook 3G for $199, Amazon said it would sell the standard Kindle for $189. Both e-readers had cost $259. Amazon did not change the price of its larger Kindle DX, which still sells for $489.

To lure even more buyers, B&N also introduced an even cheaper model. For $149, a person can buy a Wi-Fi-only version of the Nook. The more expensive model offers a Wi-Fi connection and access to AT&T's 3G wireless network for buying and downloading books from B&N's online store.

With competition growing in the e-reader market, analysts have said that prices would fall. Besides pressure from e-readers from Sony, Borders and others, Amazon and B&N are also facing competition from tablet-style computers that are considerably more expensive, but also offer much more than just displaying digital books. Offerings like the Apple iPad, for example, can also show video, play music, browse the Web, check e-mail and more. Hewlett-Packard and Dell are expected to enter the tablet market soon.

The Kindle and Nook 3G are comparable. Both have Wi-Fi and 3G connections and use the same E Ink digital paper display. The Kindle, however, is lighter at 10.2 ounces versus 11.6 ounces for the Nook. The latter has a color touchscreen for navigation, while the Kindle uses a keypad. Amazon offers more than 600,000 e-books, and B&N says it has more than a 1 million.

With booksellers getting an increasing amount of revenue from digital books, analysts say e-readers will become more important as a vehicle for increasing e-book sales. As a result, prices of e-readers could fall even further, particularly for Wi-Fi-only devices.

In dropping the price of the Nook, B&N also released a software update that primarily adds complimentary access to AT&T's nationwide Wi-Fi network, as well as continued access to B&N's network in the retailer's stores.

To differentiate their offerings, Amazon and B&N are also adding social networking features. B&N allows customers to "lend" e-books for up to 14 days with each other, while Amazon lets Kindle users share e-book passages with friends and followers on Facebook and Twitter.

Comment  | 
Print  | 
More Insights
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps – and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July 22, 2014
Sophisticated attacks demand real-time risk management and continuous monitoring. Here's how federal agencies are meeting that challenge.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.