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Kindle cost slashed as e-reader price war kicks off

Amazon Kindle

By Reuters and Nicole Kobie

Posted on 22 Jun 2010 at 08:50

Amazon.com has followed the lead of rival Barnes & Noble and slashed the price of its Kindle, as the e-reader makers respond to the threat from Apple's iPad.

Amazon announced a $70 price cut to $189 hours after US book retailer Barnes & Noble lowered the price on its own 3G compatible "Nook" to $199. Both had cost $259. Barnes & Noble also introduced a new Wi-Fi-only version of the Nook for $149.

Apple's iPad, launched in April, can also function as an e-reader. It sold more than two million units in its first 60 days and its own e-bookstore has quickly won market share.

In addition to the iPad, the Nook and Kindle also compete with Sony's Reader device. Industry experts and rivals say the field will get even busier, with more e-readers expected by year-end.

While analyst Goldman Sachs forecast US eBook sales would jump 47% by 2015, it also predicted that Apple's share of the e-book market would jump to 33% in 2015 from 10% this year, while Amazon's market share would plummet to 28% from 50%. Barnes & Noble is expected to snag 15% of e-book sales in five years, up from 5% in 2010.

Some analysts say dedicated e-readers such as Nook and Kindle are appealing because they consume less power, are easier to read on, and weigh less.

Charles Wolf, an analyst with Needham and Co, said e-readers - despite being "primitive" when compared with the likes of the iPad - will keep a core audience.

Amazon started shipping the Kindle to the UK last year.

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User comments

More false ad claims

"Apple's iPad... can also function as an e-reader"

Since when did the iPad e-ink?
Yes, it can display e-books, otherwise known as 'text', but so can most every computer monitor on sale.
Not the same as being an e-reader though

By greemble on 22 Jun 2010

It's all about books...

I think I can live with the cost of the reading device as it's just a one-off payment. What I am concerned about is the TCO (a.k.a. massively overpriced e-books). God bless project Gutenberg.

By Lomskij on 22 Jun 2010

Facts not claims

@greemble the fact is that iPad users are using it as an ebook reader and buying ebooks -so many that they may dominate the market.
e-ink both saves power and gives a better reading experience but iPad users obviously think the device is good enough for the task.

By milliganp on 22 Jun 2010

Claim before facts

Apple have made books available through iTunes & make the claim in their ads

- I wonder how many users will still use it for e-books after their first or second book?

By greemble on 22 Jun 2010

Not the first time

that the general public has opted for the inferior technology.

Still, Amazon had the head start. Maybe they should have lowered prices earlier?

By Lacrobat on 22 Jun 2010

I'm with Lomskij

It's not so much the price of the reader as the ridiculous price of the eBooks that will keep me away.

Just like MP3s there is no justification for charging the same for an electronically ditributed copy as the hard copy which costs way more to produce.

Lower the cost of the eBooks significantly, then I may be interested.

By Grunthos on 22 Jun 2010

@milliganp

It's a bit of a leap to assume ANY iPad buyers have bought it to use it as an eReader. My brother bought an iPad at the weekend and he's using it to play NFS and Angry Birds.

Maybe PC Pro could survey iPad owners and ask them what they bought it for (if a use exists!) as I think eRead will be low on the list.

Lomskij & Grunthos are right, eBooks are difficult to get, and overpriced and most titles are unavailable.

By cheysuli on 22 Jun 2010

Lomskij, Grunthos & cheysuli are right

Cost of the books really has to come down to make it worth giving up the hard copies

Yes, you can carry several thousand books everywhere on one device - but at what cost?

By greemble on 22 Jun 2010

Several thousand books - worth nicking then!

If the device has so many books in it at such high prices, a junkie would see that as a 'business opportunity'. I think I'll stick to one book at once using the old style cut & paste technology i.e. paper & ink!

By BornOnTheCusp on 22 Jun 2010

Facts -Again!

I never said every iPad owner was using it as an eReader, I never said that I thought it was a good eReader - At a personal level I'm sticking with books for the foreseeable future.
However Apple had sold 5 million eBooks in the time it took them to iPads and they now have 22% market share -these are facts.
I'm probably with greemble, after paying for the iPad, buying a few books to try it out is what most buyers will do.
The iPad is not an "attention span" device.

By milliganp on 23 Jun 2010

Poor selection of books

I loaded iBooks onto my iPhone last night (3GS) as I was curious, did some searches:
Kurzweil - no matches.
Asimov - no matches.
Clarke - only 2(!) matches
Bradbury - no matches for Ray, only Jason (Gadget Show presenter has written two childrens books).
Gave up.

By mviracca on 23 Jun 2010

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