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Amazon is releasing the newest Kindle on May 3, and insists that "customers are going to love it"

Amazon is looking to give potential Kindle buyers all the more reason to pick up the newest version of the popular e-reader by shaving $25 off the price, but customers will have to decide if an extra $25 in savings is worth the on-screen advertisements being featured in the new model.

The Amazon Kindle is a portable e-book reader that was introduced in 2007. The introductory price was $399, and as new versions were released over the years, the Kindle became slimmer with a better display, more storage, and lower prices.  

Amazon is releasing the newest Kindle on May 3 and it possesses many of the same features that the 6-inch Wi-Fi Kindle has, including a 50 percent better contrast with E Ink Pearl technology, an 8.5 ounce body, a 6-inch display, Wi-Fi, 20 percent faster page turns and enough storage for 3,500 books. The difference is that the new Kindle will only be $114, and for the first time ever, the device will feature special offers and sponsored ads

The special offers and sponsored ads will appear at the bottom of the home page and on its screen savers. Ads can be a major annoyance to consumers, but according to Kindle Director Jay Marine, a lower price and the addition of advertisements will be incentives for customers to buy the Kindle over any other competing e-readers.

"We think customers are going to love it," said Marine. 

Some of the participating advertisers will be Procter & Gamble Co.'s Olay cosmetics, General Motors Co.'s Buick and Visa Inc. JPMorgan Chase & Co.'s Amazon.com Reward Visa Card. 

Marine noted that the ads would not appear in Kindle books. Ads can only be found on the screen saver and home page, and they change frequently. If a user is interested in an ad, they can click on it to have details e-mailed to them. 

"It was very important that we didn't interfere with the reading experience," said Marine. 

The new Kindle can be pre-ordered here.



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RE: Marketing 101 for Amazon
By epobirs on 4/12/2011 4:35:06 PM , Rating: 2
I agree. And I'm sure Amazon is well aware of how important that price would be. So they must be up against the edge of what they think they can do at this moment. This time next year, you can bet there will be another model with more improvements that can be advertised as starting under $100.

It also possible Amazon will try some different marketing schemes,like require a minimum purchase commitment for a greater discount on the hardware. With a big enough commitment the hardware could be given away but then the sticker shock would just be transferred elsewhere.

Another ploy could be subscriptions like music and video services where you pay a monthly flat fee with a minimum contract period. This also works for 'free' cellphones.

You can bet this is a very intensely debated subject in the offices of Amazon executives. The primary limit on how many e-books they can sell is the installed base of Kindles and devices running a Kindle app.


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