Print 28 comment(s) - last by TakinYourPoint.. on May 21 at 1:13 PM

Apparently people will sit through ads to save $25

Amazon launched its latest Kindle eReader recently with a lower price point. The catch, however, was that users would be bombarded with ads while the device was sitting idle. The surprising thing for many when the new Kindle launched was that it was only $25 less than the version that doesn't require ads. The big question on many minds was if consumers would buy the ad-supported versions to save a few bucks.

It appears that the answer is yes; the ad-supported Kindle at $114 has taken over the top spot for best-selling electronics on Granted, most take that with a grain of salt since Amazon provides the numbers. The fact that the ad-supported version took the top spot is impressive and might herald a new rush of cheaper eReaders from other providers that are ad-supported. 

There is a chance that an ad-supported version might be more lucrative for Amazon and others than the standard version. That would depend on the price Amazon is able to charge for ads.

While the ad-supported Kindle is doing well in the market, there is rising speculation that Amazon may be readying a tablet. Amazon certainly has the customer base to sell a tablet and could leverage some of the eReader systems already in place for the tablet.

Analyst Sarah Rotman Epps from Forrester wrote, “Amazon could create a compelling Android- or Linux-based tablet offering easy access to Amazon’s storefront (including its forthcoming Android app store) and unique Amazon features like one-click purchasing, Amazon Prime service, and its recommendation engine. More consumers considering buying a tablet say that they would consider Amazon (24 percent) than Motorola (18 percent).”

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bad math
By kelmerp on 5/17/2011 4:04:35 PM , Rating: 2
The ad supported Kindle is the 3G version, not the wifi-only version. The 3G version is $189, so it's actually a $65 savings. The ad-supported Kindle has a permanent, worldwide 3G internet connection which is actually he thing I find most intriguing, but I'm still sitting on the sidelines a little longer since I have some concern over the DRM.

RE: bad math
By sprockkets on 5/17/2011 4:56:30 PM , Rating: 3
Unless you have the actual device in your hands, their website says otherwise.

RE: bad math
By darckhart on 5/17/2011 9:13:17 PM , Rating: 2
I haven't bothered to compare all the tech specs, nor all the special "offers" tied to this ad kindle, but it is UNFAIR to claim #1 selling if there are other variables than simply ads being the only difference. That would be confounding. I mean, if it's a better model, comes with tons of promos, and comes with free ice cream, OF COURSE IT WILL SELL BETTER. PANTS ON FIRE!!

RE: bad math
By GulWestfale on 5/17/2011 10:32:12 PM , Rating: 1
while i myself would rather pony up the extra cash to avoid ads, i do think that giving people the option to choose is a great thing. other companies would have taken the non-ad supported device off the market entirely, and then we'd all have to suffer through the asinine lies that pass for advertising these days.

furtehrmore, as an author who has seen virtually all of his sales on amazon (and almost none on ibooks/B&N/sony reader), i always welcome a new addition to the kindle family, as more machines equals more book sales for me. i saw a spike in sales in january (after the new kindle became amazon's best-selling item), and i am noticing another spike right now. i hope they will keep introducing new (and cheaper) hardware!

if anyone wants to check out my books, here's the link:

RE: bad math
By GulWestfale on 5/17/2011 10:34:20 PM , Rating: 2
hmm, that link doesn't work. just search for 'sascha von bornheim' on amazon (US, UK, or DE sites), and you'll find me. :)

RE: bad math
By darckhart on 5/18/2011 11:05:22 AM , Rating: 2
i do think that giving people the option to choose is a great thing

Yup, I have no problem with that. And like yourself, I prefer an ad-free option here.

My main beef is the PR twisting. The ONLY difference between them better be price and ads. To have other confounding variables and then make claims as such is unethical.

RE: bad math
By epobirs on 5/19/2011 9:01:37 AM , Rating: 3
It isn't a separate hardware model. It is the exact same unit unit as the existing 3rd Generation WiFi unit, just with different firmware for the ads.

As such, this is serving to demonstrate that cost of entry is a major factor in the growth of this device category.

Interestingly, if the offers are useful to you with enough frequency, this model can be considered free. One of the first offers I got on mine was a $100 Amazon gift card if applied for and was accepted for an Amazon Visa credit card.

No, I'd been planning to get one of those for a while. I currently do almost all my purchasing on a Toys R Us MasterCard that pays off at 1% TRU credit for most purchases and 4% within TRU. So it helps cover much of my video game purchases. But lately I've bought more games through Amazon and the have an immense variety of other products, so their points card may make far more sense.

Between that and some of the other offers it almost feels like they've paid me to take the Kindle. I'm already a happy Nook user but since I'm doing e-book production I wanted a Kindle for testing. The Previewer app is not completely reliable. That this is working out this way is rather a bonus.

RE: bad math
By epobirs on 5/19/2011 8:48:12 AM , Rating: 2
You are completely wrong. I have a unit at hand that was delivered three days ago. Interesting packing/mailer, BTW.

The Kindle w/ads is WiFi only. It would be extremely counterproductive for it to have 3G support due to the bandwidth costs. When Amazon passes this cost on the book publishers the rate is 15 cents a megabyte. This may not sound like much but it's a big byte if you're selling something with a lot of illustration at a low price.

DRM is a nonissue. There are freeware tools that will strip off the DRM. I've also had no problem loading MOBI file obtained from torrents or converted via Calibre from EPUB files obtained from torrents.

"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
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