Kindle price cut for second time in a week as war hots up
Amazon cut the price of its Kindle range of e-readers for the second time in a week yesterday as it unveiled its updated DX model.
In a bid to stave off fierce competition from Apple’s iPad, Amazon cut the price of its high-end reader from $489 (£327) to just $379.
The new version features a 9.7 inch screen – identical to the iPad – and a black rim. It also comes with free 3G wireless connection with no monthly bills or annual contracts.
The internet giant slashed the price for its standard ebook reader in the US from $259 to $189. Reductions are expected to reach the UK soon.
Rival Barnes & Noble also lowered the price of its Nook reader to $199.
At stake is the market share for e-books, the fastest-growing segment in a moribund bookselling industry.
Industry experts and rivals say the field will get even busier, with more e-readers expected this year.
Apple’s iPad, launched in April at a starting price of $499, can function as an e-reader, but unlike competing models, it has a color screen and can be used as a full computer. It sold more than 2m units in its first 60 days and its own e-bookstore has quickly won an estimated 22 per cent market share.
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.
Shares of Amazon.com are down about 18 per cent so far this year, less than the 32 per cent decline in Barnes & Noble shares.