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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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.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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