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Falling Prices For Amazon Kindle Readers Spell Good Value For Book Lovers

July 22nd, 2010

Amazon seemed to have found the perfect product in their Kindle reader. It was by far the market leader in the e-book reader arena, commanding a 60% share of all sales, and there was no real competition to speak of. Despite the launch of competing e-book readers by other manufacturers such as Bookeen, Barnes and Noble and Sony, there was no genuine competition and the Kindle's top position seemed to be unassailable.

Then the Apple iPad came along and, although it is an entirely different device, it did look set to spoil the party somewhat. The iPad is not without some fairly major flaws of its own, and whilst most Apple devices seem to provoke a "love them or loathe them" response, the numbers of people who would buy almost anything with the Apple logo on it are certainly large enough to make a major dent in the sales of the Kindle.

As well as releasing new, sexy hardware, Apple also struck a deal with many of the major publishers which let them charge whatever they wanted for e-books - as long as they weren't offered for less on any other device - the Kindle in other words. This looked set to put a bit of a spanner in the works of Amazon's policy of providing e-books for $ 9.99 or less. It certainly seems as if the price of e-books has been creeping upwards since the launch of the iPad. It does seem a little strange that increased competition should drive prices upwards - but there you have it.

The price of the e-book readers themselves has fallen however. Barnes and Noble cut the price of their Nook reader to $ 199. Amazon's Kindle 2.0 is now selling for just $ 189 - a huge reduction over the $ 359 launch price of February 2009. The Kindle DX can now be yours for just $ 379, a saving of $ 110 over the previous $ 489 ticket price.

So the top of the range, and freshly updated, DX reader is now over $ 100 cheaper than the entry level Apple iPad - and unlike the iPad it requires no monthly internet connection fee. The iPad is, of course, considerably more than an e-book reader - and many customers will be quite happy to pay more for a more powerful device which can be used for a variety of different applications - even if it does have a considerably shorter battery life.

Time will tell whether or not this downward price trend for e-book readers is no more than a knee-jerk reaction to the appearance of the iPad or whether it is the beginning of a new pricing policy. It may be that companies such as Barnes and Noble and Amazon could use the upward trend in e-book prices to offset lower hardware ticket prices and make their profit on the sale of e-books over the lifetime of the device. In Amazon's case, it may be no more than a holding tactic until the next generation Kindle, complete with color screen, hits the market later this year.

Find out more about the Amazon Kindle for yourself and view the wide range of Kindle accessories available to help you personalise your reader.