Are the cuts in prices of e-Book readers the result of pressure from the iPad’s use as an e-book reader or is it their declining production cost? Or both? This week Barnes & Noble reduced the price of its Nook e-reader to $199 and Amazon.com cut the price of its entry-level Kindle e-reader to $189. Both had been $259.
Barnes & Noble also announced a Wi-Fi only version for $149 that connects to the Net only in Wi-Fi hotspots. Tony Astarita, VP of digital products at Barnes & Noble, said the company was working on a low-cost version before the iPad launched. The reduced price, he said, was part of the company’s summer reading promotion.
Amazon said it has more than 600,000 books for sale in its e-bookstore.
In its TV commercials Amazon.com has been showing its Kindle being used on the beach. Kindle is said to be better than the iPad for reading in sunny locations.
Apple has shown its iPad is a serious competitor as an e-book reader. So far Apple has sold over three million iPads. Apple chief Steve Jobs said earlier this month that iPad users had downloaded about five million books in the iPad’s first 65 days on the market. Apple’s iBook reader for the iPhone will be launched this week.
Barnes & Noble and Amazon have countered by launching apps for the iPad, iPhone and other mobile devices. The apps allow users to buy and read e-books sold by Barnes & Noble and Amazon. Amazon did not increase the $489 price of its high-end Kindle. Yet.