Unique Original Articles » Ad-supported Kindle to ship at $114

Ad-supported Kindle to ship at $114

Author: Barbara Coswell

Amazon is in a position to ride the wave of revolution in the print industry, thanks to its Kindle device. Currently, Amazon has a 60 percent market share in the e-reader market, a hold that should increase as the $114 Kindle with Special Offers hits the market next month. What is the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, can be advertisement-supported. Source of article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Is an ad-based Kindle worth $25 off standard price?

The first generation Amazon kindle in 2007 cost $399. The price deduction never integrated advertisements before this. Doing this, the e-reader market will be breached making the iPad competition. May 3 is when the kindle will start with Special Offers. The Kindle 3 can be put in stores then. Both Best Purchase and Target will carry it.

Founder and CEO of Amazon Jeff Bezos claim it is a "chicken in every pot" move. Everyone will want the Special Offers $114 kindle:

"We're working hard to make sure that anyone who wants a Kindle can afford one," he said via a statement.

An ad-based kindle might bright out typical concerns. These concerns were displayed as responders on a Christian Science Monitor article on price cuts. The price of books was brought up by one reader that claims kindles for free with advertisements would be okay with $0.99 books. Several experts say it is good that Amazon only has ads on the bottom of the home screen and on Kindle's screensaver, although some complain a $25 discount isn't enough.

"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.

Importance of a price

The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. 99 is a magical number. Most marketing would suggest this.

The Columbia Business School in New York did research on this though. It showed this might not be the case anymore. A dollar plus approach, adding a penny, was more effective than the dollar minus approach, taking a penny away. The Columbia study showed this clearly. There was a 3 percent increase in sales of dollar plus method goods. This is because they didn't seem as manipulative to consumers.


Christian Science Monitor


Columbia Business School


Knowing and Making




Kindle sales tripled after last price drop


Post resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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