Today Amazon.com cut the price of their Kindle eReader from $259 to $189. The last price cut for the device was in October of last year. Barnes & Noble prompted Amazon's price cut with one of their own as they lowered the price on their popular nook eReader while also introducing a wi-fi only model.
I think most people have been expecting this move since late last year when Barnes & Noble released their competing eReader, the nook, and especially now that Apple's iPad has proven itself a viable contender (and more depending on who you ask) in the eReader space.
I received my Kindle as a Christmas gift last year. My first impressions were favorable. As far as dedicated devices go, it's top-notch. I wouldn't want to have waited for this price drop, either. I've read about an eBook per week since turning the device on, so I think I've gotten some good use out of it. Of course, for someone new to the device, a lower price justifies the purchase that much more.
Back in April of 2009, iSuppli opened up a Kindle 2, identified the parts, and, based on their findings, figured out what the device really costs. Their finding: $185.49. I'm going to guess that component and manufacturing costs have since come down because otherwise that leaves Amazon with a paltry profit of $3.51.
The last point I want to make about this latest price reduction is to ask the question once more: Is now the time to buy a Kindle? No doubt, it makes the idea more compelling. But times have changed. There are viable competitors out there, including a just announced version of the nook with wi-fi only for $149. Apple's iPad is still hovering at $499, though the iPad is much more than just an eReader.
In any case, competition is always good from a consumer perspective; it drives prices down and hastens new development. For me, I still just need an eReader device, but it's nice to know prices are coming down while functionality continues to climb to new heights.
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