It looks like Amazon had dropped the price of the latest generation Kindle 2, the 6-inch reading wireless reading device, from $359 to $299. I’m actually kicking myself right now because I just purchased the same one for the higher price a few days ago.
It’s unclear why Amazon dropped the price. Sales don’t seem to be a problem, as it appeared sales for the latest generation Kindle are growing. As of April, sales of the Kindle 2 were apparently selling at roughly double the rate of the first generation device. According to a source close to Amazon, approximately 300,000 of the Kindle 2s had been shipped as of mid-April, suggesting Amazon has made over $100 million in revenue from sales of the $359 device alone this year.
Amazon officially unveiled the Kindle 2 in February. Besides being smaller and sleeker than its older brother, the Kindle 2 has a longer battery life and 7 times the storage. Amazon dropped the price of the first generation Kindles to $299. But why would you buy the old version for the same price as the new, smaller one? The Kindle DX is still priced at $489. We first broke the news of the Kindle 2 and the large screen Kindle last fall.
A different market than the iPhone users, but great to see them going cheaper. The storage is key.
A different market than the iPhone users? I’m not sure I understand your point (other than stating the obvious). But I’m curious if there’s something I’m missing in your statement.
You have 30 days to return it, go ahead and do so and then order a new one. Voila.., savings.
You can simply call them and they will refund the difference.
well, doesn’t amazon have a 30 day price guarantee? meaning you can get a credit for the $60…
They used to have price guarantee, but when I tried this earlier this year, they said that they no longer provide price guarantees. Return and rebuy should still work I would think, or use your credit card price guarantee to see if it works.
I called them and they promised refund.
You are unlucky that’s all i can say.
IMo refund the credit is impossible.
I think book price is key. I was fine with the high cost, but the $10+ prices on “books” seems outrageous. My wife would kill to have this thing but we can’t afford her buying 5-10 books/ month at $10 a pop. $5 to $7 and we’re sold.
So let me get this straight, you can afford to buy a $300 book reader, but you can’t afford the extra $30 for $10 books.
Got it.
all the money went to the ebook reader
You’re missing the point. Electronic copies are cheaper to manufacture, so your price to purchase them should be priced lower. Know one is buying Kindle technology with the expectation that they will pay standard “hard copy” retail prices for ebooks.
$10 is much cheaper than hardback price, and about on par with a paperback nowadays. Also, “cheaper to manufacture” only talks about the physical medium: you still have to pay the writer(s), editor(s), advertising, typsetting & electronic formatting, etc. The physical distribution is a cost, yes, but it’s not necessarily as big a chunk as people think.
Most of the books I’m getting are $4-$8. Tell your wife to stop buying new releases – which would be $25 in hardcover.
Good start, now drop it $100 more and I will buy one. I want to get one of these for my GF, but $299 is hard to justify. $199 is a perfect price for something like this and I have been saying for a while that once it drops to under $200, I will buy one for her.
You can get a refund for the difference – Amazon did that for me when I bought a TV a few years ago and immediately cut prices $100.
The Kindle 1 had an SD card slot, so, roughly, unlimited storage, verses the Kindle 2 limited storage. So, poor comparison…
I still won’t buy it
Great example of influencing the market through timed communications. Not only will they drive prospects back to reconsider, those that postponed their purchase, they will also compel those prospects to consider the DX version. Some will still hold off, some will opt for the 6″ version and a percentage will be upsold to the DX.
Also watch as this likely is a step towards an upcoming announcement that they are lowering the price of the DX down to say $409 or maybe even a combined announcement that the 6″ is lowered again to $259 and the DX to $399.
Side Note: The “Ads by Google” ad next to the TechCrunch logo still shows the Kindle for $359 at the time of this comment.
I’d really love to get one. But I agree with the rest here… price point is still too high for me to consider it. $99-199 would be perfect and I would definitely get one then.
For those who commented their “buy price” is $100 to $200 lower and books should be 30% or 50% less . . . you simply are not as valuable as the cusotmers who have been paying the higher prices.
Your day will likely come, but Amazon is being smart by not leaving money on the table and following basic Product Lifecycle theory.
It’s true that we are not the target customer right now. Just like I wasn’t the target customer when the iphone was originally selling for $600.
My thinking is the following – Yes, reading on a Kindle is a lot easier than on a laptop or phone. The thing is I just don’t NEED the Kindle. It’s definitely more of a luxury. I can wait for the $99-199 price point.
Price is too high still…maybe they realized they were missing out on customers.
this is still pricey! I would like to buy this if it sells under $200.
I wouldn’t buy this thing no matter the price. Not when you pay for all those books with DRM and they can lock you out anytime they decide they don’t like you. Get rid of the DRM and let me actually OWN the books I pay for then MAYBE I’ll consider one.
You’re perpetuating a DRM myth. DRM will never succeed at locking you out.
I’m holding out for the DX to drop to a more affordable price. My vision is bad enough that I would need the bigger screen to read comfortably for very long.
When on earth is the Kindle being sold in the UK? I wanted to buy one when I lived in the US but all we have is the Sony E Reader – I really want a Kindle.
Cheers Jeff
Yours since the get go
David Saunders
Plymouth, England
I’m surprised it’s still that expensive
Amazon: Kindle Costs ‘Significantly’ More Than $185 To Produce
On Amazon’s (AMZN) earnings call, CFO Tom Szkutak said the cost to manufacture its Kindle e-book reader is “significantly higher” than the $185 that research firm iSuppli estimated recently
http://www.busi...-produce-2009-4
If iSuppli can provide a component strip-down that comes to $185, iSuppli should just start making them and selling the units to Amazon
i actually think the price is fine. but i stick to my position that amazon should get others to build their own kindle devices.
http://www.tech...out-the-kindle/
I just called Amazon (1-800-201-7575) and they credited me $60, since I bought my Kindle 2 within 30 days of the drop.
I prefer using the Barnes & Noble app for iPhone.
Until this recession is over, I think I’ll keep my library card handy, thanks.
good answer.
I’d guess there are two factors behind the price drop.
One is that’s it’s a razor-and-blades model. People with Kindles, or at least the ones I know, are be substantially more likely to buy more books, and to buy a greater share of books from Amazon. It’s a similar play to Apple and ITMS. I expect Amazon is trying to sell Kindles as close to cost as possible. A cost that should decline over time.
The other is that Amazon has a long-term focus on delivering value to customers, not a short-term focus on cash extraction. They’re in the book business, not the consumer electronics manufacturing business. They don’t aim to profit on their shipping and handling; instead they relentlessly try to make it as lean as possible, to maximize value per customer dollar. The Kindle is just another delivery mechanism.
Best comment on this post yet.
Why does the author think the price of the Kindle is ridiculous?
It is priced similar to its’ competition and appears to be selling well. Kindle owners seem to really like the device, too.
If you bought it for the full price right before a price drop, most companies will refund you the difference. Contact Amazon Customer Service and ask them to give you $60.
Drop the price to $150, lose the 3G, put SD support back in, add WiFi support… Then we can talk about a useful product.
ha…just called Amazon to get a $60 credit and they are going through a “system upgrade” in the middle of the afternoon. How conveeeeenient.
Here’s the link: http://www.amaz.../itquotes148-20
The Kindle is an okay idea, but I would never pay more than $25 for it. Amazon should give it away free and derive its profits from a share in the revenue of Kindle-friendly books.
A usable laptop can be picked up for $300. Compared to that, the Kindle’s price is ridiculous.
Competition. Competition. Competition. A good salesman knows when it time to reduce the price to make a sale.
They were able to reduce the prices because they are fucking the associates who helped them widely promote the kindle. Amazon sucks donkey dongs
I want the kindle content but I want it available on any of my portable devices: android phone, nokia n810, or smart Q7. Holding out until then.
Had Kindle 1 and the screen died, fortunately had SquareTrade warrenty. I use ebook exclusively for PDF documents (ie, investment newsletters, education, etc) so brought Sony PRS-505 for $199 (ebay). I’ll buy the Kindle DX when it comes down to $200. $489 is way overpriced.
by the way, brought the Kindle 1 on ebay for $219. Always wait and buy on EBAY, much much cheaper than paying full time! and you’re fully protected by SquareTrade
I’ve bought a Kindle 2 at Revolution Store few weeks ago and I’m really impressed with it. And now for only $299.00!!!
I like how the price dropped to $259 for both the “US” and “International” versions of the Kindle 2 the day after B&N’s Nook went Big Public. That is healthy competition for you – too bad it took the “other guys” this long to get into the market. I always resented Amazon’s smug and monopolistic price points and its oppressive media format. It is why I have held off buying one and now I am glad I did. Maybe with Plastic Logic’s Que in the game and a slow Holiday season we shall see prices at the levels they should be for these “one trick” pony devices – sub $200