Lower Prices For Kindle Readers Are Good News For Consumers
Amazon seemed to have found the perfect product in their Kindle reader. It was by far the market leader in the e-book reader arena, commanding a 60% share of all sales, and there was no real competition to speak of. Despite the release of competing e-book readers by other manufacturers such as Bookeen, Barnes and Noble and Sony, there was no credible competition and the Kindle’s top position seemed to be unassailable.
Then the Apple iPad came along and, although it is an entirely different device, it did look set to spoil the party somewhat. The iPad is not without some fairly major flaws of its own, and whilst most Apple devices seem to provoke a “love them or loathe them” response, the numbers of people who would buy almost anything with the Apple logo on it are certainly large enough to make a major dent in the sales of the Kindle.
As well as releasing new, sexy hardware, Apple also struck a deal with many of the major publishers which let them charge whatever they wanted for e-books – as long as they weren’t offered for less on any other device – the Kindle in other words. This looked set to put a bit of a spanner in the works of Amazon’s policy of providing e-books for $ 9.99 or less. It certainly seems as if the price of e-books has been creeping upwards since the launch of the iPad. It does seem a little strange that increased competition should drive prices upwards – but there you have it.
The price of the hardware for reading the e-books has certainly fallen in the same timespan. The Nook reader, from Barnes and Noble, has seen a price reduction to $ 199 from $259. Amazon themselves have now cut the Kindle 2.0 price to $ 189 – quite a drop from the February 2009 launch price of $ 359. The larger format Kindle DX has been upgraded with a new sharper screen and the price has been cut from $ 489 to $ 379.
So the top of the range, and freshly updated, DX reader is now over $ 100 cheaper than the entry level Apple iPad – and unlike the iPad it requires no monthly internet connection fee. The iPad is, of course, considerably more than an e-book reader – and many customers will be quite happy to pay more for a more powerful device which can be used for a variety of different applications – even if it does have a considerably shorter battery life.
This downward price trend for e-book readers could be no more than a reaction to the appearance of the iPad on the scene. On the other hand, it could signal a new approach by the likes of Barnes and Noble and Amazon. Given their business structures, it would be quite possible for these companies to take advantage of a higher average e-book price by selling the hardware for less and then making more money on the actual e-book sales over the lifetime of the reader.
Learn more about the Amazon Kindle for yourself and view the wide range of Kindle accessories available to help you personalise your reader.