Amazon drops Kindle price to $259, becomes cheapest Kindle yet
Amazon on Tuesday evening dropped the price of its cheapest Kindle 2 reading device by $40, bringing it down to $259, while offering a new Kindle with global wireless access for a $20 premium. Amazon says the combo US/International version uses GSM technology for coverage in over 100 countries, but that US customers traveling abroad will be charged an additional $1.99 fee for wirelessly downloading books or single issues of periodicals from "your Archived Items or the Kindle store while roaming internationally."
As usual, customers can avoid these fees if they download books, periodicals, and personal documents via their computer and transfer them to the Kindle using USB.
The company's popular e-book reader with US wireless is available immediately, while the version with both US and international wireless -- available for pre-order today -- is expected to ship on October 19 for $279.
In an interview, Amazon CEO Jeff Bezos said the company can now afford to reduce the price because of the increased number of Kindles the company is making — and selling.
Bezos called it Amazon’s best-selling product, but Amazon has not disclosed sales figures for the Kindle, which has a 6-inch screen that displays shades of gray, room to store 1,500 books and the ability to download books wirelessly.
The price reduction also shows Amazon is trying to maintain a lead in the nascent e-reader market as the field gets more crowded.
The second price drop in about three months -- the first was in early July -- comes as competitors enter the increasingly crowded e-book market, including the recent introduction of Sony's PRS-600 Touch eReader (and its forthcoming Daily Edition Reader with 3G) along with other more affordable (but simpler) devices from companies such as iRiver, iRex and Samsung.
In addition to promises by electronics companies to cut the price of the devices in half, other larger players such as Time, Inc. and Apple are also rumored to be entering the e-book market with their own devices.
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