Amazon drops Kindle price to $189 in response to Barnes & Noble
The day after Father’s Day, Barnes & Noble drops the price of their Nook to $199 and releases a WiFi-only Nook for $149. Likewise, Amazon dropped the price on their Kindle to $189. I suspect that Amazon lowered their Kindle price in response to B&N’s own Nook price decrease.
Of course, I find it strange both decided to lower their prices after Father’s Day, especially considering how both Amazon and B&N went on an advertising blitz that marketed their respective e-readers as the perfect gift for dads. I wonder how many of these dads who did receive an e-reader will be slightly annoyed that their loved ones overpaid for their new toy.
What do these lower prices mean?
I think these lower prices do mean a couple of things:
1. Price wars: The major players in the e-reader industry are trying to grab a bigger share of the market. The old price of $259 for both the Kindle and Nook seemed a little high for a lot of would-be consumers. I think setting their prices below $200 will entice more people to buy, especially those who are on the fence.
2. New hardware upgrade coming soon: If history is any indication, companies usually start lowering the prices on their current gadgets when a new, upgraded and more expensive version is on the horizon. I’m will to bet that by the holiday season we’ll see an upgraded Nook and Kindle.
3. Competing with Apple’s iPad: We can’t ignore the iPad, even thought it’s not a dedicated ebook reader. The only way that Barnes & Noble and Amazon can really compete with Apple is by offering an alternative that won’t break the bank for most consumers (as much as I love the iPad, it’s a little too expensive for me right now).
There are many more ways to interpret these lower prices, but I think the above are the top three. Furthermore, my prediction is that e-readers will be like the Walkman, which sold for well over $100 when they made their first debut in 1979.
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