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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 Amazon.com. 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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