- Barnes & Noble slashed the price on its original Nook electronic reader which has both 3G and Wi-Fi, from $259 to $199, undercutting Amazon's $259 Kindle. B&N will also offer a lower-price Nook with Wi-Fi but no 3G, for just $149. A new software update gives Nooks access to AT&T's national Wi-Fi network.
- Borders Books is accepting pre-orders for an $119.99 Aluratek e-reader, and sells a Kobo model for $149.99, plus more expensive Sony models. Today, Borders offered a $20 gift card and double loyalty points with the purchase of a Kobo e-reader.
- Amazon.com quickly responded to the B&N move by cutting $70 off the price of its Kindle, going from $259 to $189. The first Kindle was initially priced at $399 in 2007. The Kindle DX, with a larger screen, is priced at $489, just $10 less than the least-expensive iPad.
The e-reader business seems to be dividing into Apple -- and everybody else.
Don't be surprised to see BestBuy and Staples selling e-readers for $99 for back-to-school, and Walmart selling e-readers for less than $50 on Black Friday in November.
The ereaders need to be $50 all the time. If Amazon was smart, they would sell the e-reader at a loss and develop their Kindle library even further.
ReplyDeleteThe profit is in the long tail--- not the sale of the reader itself.
To Christy:
ReplyDeleteYears ago, Gillette realized that the big money is in selling blades, not razors.