Amazon cuts price of Kindle in U.S. to $259
The Amazon Kindle has proven to be a
very popular product for Amazon.com and is one of the online giants
top selling gadgets. The eBook reader made big waves in the market
and quickly became more desired than established eReaders on the
market from companies like Sony.
The big draw to the Kindle
was the massive Amazon eBook store and the fact that the device ships
with AT&T 3G internet connectivity for free allowing the user to
download books from practically anywhere. Since the launch of the
original Kindle, which was followed by the Kindle 2 and the Kindle
DX, the devices have only been available in America.
Amazon
announced today that it was now offering the Kindle 2 to consumers
around the world. For Kindle fans in the U.S., the launch of the
device internationally means a price cut at home. Amazon cut the
price of the Kindle to $259 after dropping
the price for the eReader in July to $299. Abroad the Kindle 2
will sell for the equivalent of $279.
Reuters reports
that Amazon sees the Kindle as a huge growth driver for the company
and the device now has over 200,000 books available for
download.
Amazon CEO Jeff Bezos told Reuters, "Our
vision for Kindle is every book ever printed, in print or out of
print, in every language, all available within 60 seconds." He
added, "That's a multi-decade vision."
When asked if
Amazon might eventually turn the Kindle into a device more like a
tablet computer with a touch screen and the ability to surf the net
and send/receive mail, Bezos reiterated that Amazon rejects
compromise in the Kindle. The company doesn't want tech that will
affect the core reading capability of the device by reducing
readability or using too much power.
Amazon is making strides
to bring its digital bookstore to devices other than the Kindle and
has offered an app for the iPhone/iPod touch that allows users to
read books from its bookstores. Bezos said, "We want you to read
your Kindle books on laptops and smartphones, anything with an
installed base." Bezos also said that Amazon was in principal
not against offering its bookstore on competing devices like the ones
from Sony, but it would only offer the store to devices with a large
install base.
Amazon is expecting a lot from the Kindle over
the holiday season and analysts are expecting big sales from the
eReader market in general. Forrester Research estimates that 3
million eReaders will be sold in the U.S. in 2009; earlier estimates
pegged the number at 2 million. By the end of 2010, eReaders are
expected to have cumulative sales of about 10 million units.
Amazon
doesn't provide numbers for sales of its Kindle, but analysts predict
that the device has about 60% of the eReader market and that the
device may make up as much as 8.4% of Amazon's total revenue. That
would put sales of the Kindle at about $420 million with gross
profits of $35 million.
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