
Amazon caused a bit of a
stir in the gadget world Wednesday by lowering the price on its Kindle 2 e-book reader by $60, to $299. The price cut on the second-generation device reflects increasing competition in the e-reader
space and should make the Kindle more inviting to a wider range of consumers.
But it's certainly not a big enough reduction to send everyone heading to Amazon get their own handy reading tablet.
If $200 has become a standard of sorts for smartphones, Amazon would still have to cut the price by another one-third to be competitive by that comparison. And if the Kindle is the iPhone of
e-readers, consumers may wonder why shouldn't it be priced the same as the new $200 iPhone 3G S.
That raises another question. Why should anyone, especially iPhone owners, buy a Kindle at all
when they can simply download the Kindle iPhone app and get an e-reader along with all the other functions of a smartphone in one package? Amazon founder and CEO Jeff Bezos has said reading is an
important enough activity that it warrants its own purpose-built device. Fair enough.
But as Melissa J. Perenson of PC Worldadmits, "I often find myself reaching for my iPhone 3GS to read Kindle content --
even more often than I do the Kindle itself."
Probably not what Bezos would like to hear. If the Kindle and other e-readers are to expand beyond a niche market, prices will have to fall at
least within the range of other handheld devices. Consider that earlier this week, Best Buy and Sprint, Amazon's wireless partner in the Kindle, announced they were teaming to offer a 99 cent
(essentially free) netbook, with a two-year service contract. Of course, the Kindle requires only an upfront purchase and not a monthly subscription that could end up being more costly over time.
But as prices for portable devices from point-and-shoot cameras to smartphones continue to fall to $200 or less, it creates a growing expectation among consumers that on-the-go gadgets
shouldn't cost much more. And as pricing on the Kindle goes, so too will likely go the rest of the e-reader market.