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Wednesday
Jul282010

Amazon Offers a $139 Kindle and More...

How low can the price of a Kindle go?  About a year ago, I predicted that you would be able to get a Kindle for $99, I'm almost right.

 Amazon.com launched a cheaper, wireless-only Kindle on Wednesday, betting that the $139 price will turn its latest electronic reader into a mass-appeal device as Apple Inc's iPad gains ground.

The world's largest online retailer and leading e-reader seller also revealed its third generation Kindle, some 21 percent smaller and 15 percent lighter than the previous version, but still priced at $189.

Amazon said last week that its growth rate tripled after it cut its price on the device from $259 and said e-books were outselling hardcover books. Apple has said it sold more than 3 million iPads, starting at $499, since the product was introduced in April.

"We've sold millions of the prior generation of Kindle and we're going to sell millions of these," Amazon's Jeff Bezos said. "And when you get up into that kind of volume, you're able to do a lot of things with the manufacturing models and supply chain in terms of driving down the cost."

The devices, which are now available for preorder, will begin shipping Aug 27.

Amazon has improved the contrast on the screen of its newest Kindles, but the size of the 6-inch reading area remains the same. Page turns are also faster and some 3500 books can now be stored, double the previous amount. Both models have a one-month battery life.

Tthe $139 price for Amazon's new WiFi version is just above the $99 price point that many analysts have cited as required for mass adoption.

"We think at that price point that people are going to buy multiple Kindles for their household," Bezos said.

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