Facing fierce challenges from Apple's iPad, on Thursday Amazon made a surprise move that they say could get people to buy Kindles for the entire family!
Not only does CEO Jeff Bezos plan to sell a new lighter version of the Kindle for $189 - but he's also brining a second Kindle to market -- for $139.
You read that right, $139. That's $360 less than Steve Jobs’ most inexpensive iPad.
The $189 Kindle can download books wirelessly over 3G cellular networks and over Wi-Fi. By comparasion the one for $139 will be limited to WiFi only.
According to Amazon's website...
"The all-new Kindle has a new electronic-ink screen with 50 percent better contrast than any other e-reader, a new sleek design with a 21 percent smaller body while still keeping the same 6-inch-size reading area, and a 15 percent lighter weight at just 8.7 ounces.
The new Kindle also offers 20 percent faster page turns, up to one month of battery life, double the storage to 3,500 books, built-in Wi-Fi, a graphite color option and more--all for only 189, and still with free 3G wireless--no monthly bills or annual contracts."
Jeff Bezos hopes the new price will get people to buy multiple Kindles from Amazon for the entire family.
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Here’s the price breakdown:
Amazon's Wi-Fi-only Kindle 3: $139
Amazon's full-version Kindle 3: $189
Barnes & Noble Inc.'s regular Nook: $199
Barnes & Noble's Wi-Fi-only Nook: $149
Borders Group Inc.'s Kobo eReader: $149
Apple Inc.'s iPad: Starts at $499
Sony Reader Daily Edition: $250
Sony Reader Pocket Edition: $150
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What’s the takeaway?
The price cut is good but not good enough, says Gene Munster of Piper Jaffray. I really think the Kindle needs to sell at $99 before Amazon competes in a meaningful way.
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